Fashion chain in administration less than 12 months after rescue
Fashion group Elle has plunged into administration for the second time in less than a year, amid mounting concerns that the March quarter rent day will spark another round of retail collapses.

The 40-outlet L Wear business, rescued by former Country Casuals chairman Mark Bunce and his wife Christina last April, went into administration on Monday after cashflow difficulties.

Baker Tilly administrator Geoff Carton-Kelly said that the retailer had faced some 'issues in relation to the management' in recent months, but that tough high street trading had also contributed to its demise.

He said: 'This spring the collection has gone quite well, but last year's collections did not create enough excitement.'

Baker Tilly has shut all but eight of Elle's outlets, including its high street and shopping centre stores in high-profile locations such as Meadowhall and Bluewater. All 20 concessions in House of Fraser have closed.

ML Marketing consultant Mars-hall Lester feared more failures, as retailers continue to struggle with competition and costs. 'Once again the antiquated system of quarterly rents is coming round to haunt retailers,' he said.

One recovery specialist added that fashion retailers were particularly feeling the pinch from value players such as Primark.

There was speculation this week that restructuring and recovery specialist Grant Thornton had been appointed to work with Ethel Austin. However, Ethel Austin chief executive Simon Cooper said that Grant Thornton was in the final throes of winding down some old companies associated with the retailer's refinancing and speculation that it was in trouble was incorrect.

Credit Suisse bought most of the Ethel Austin debt owned by Barclays last month, which has added to uncertainty about the retailer's future.

Cooper said: 'We are healthily up on our like-for-likes. October and November were difficult, but December, January and February have been better.'

Carton-Kelly has received several expressions of interest in L Wear, but it is not clear whether Hachette - the French magazine publisher which owns the Elle brand - would grant a new clothing license in the UK.

The Bunces are thought to be considering whether to buy the business back.

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