Childrenswear retailer Adams has fallen into administration for the third time in three years.
Corporate restructuring business MCR has been appointed administrator to the business today.
Adams, which was sold to Pakistani firm Habib Alvi in September 2009 by previous chairman John Shannon, is believed to have struggled under its new owners as rumours of falling sales and late payments to suppliers haunted the kidswear retailer, as revealed by Drapers in November.
It is understood that Shannon, who has a debenture over the business, appointed administrators today.
Paul Clark and Matt Bond, partners at MCR, have been appointed joint administrators of the business, which trades as JS Childrenswear and has 125 stores and 18 concessions in the UK and Republic of Ireland. It employs over 2,000 staff.
Clark said: “Like many retailers, it [Adams] has experienced a difficult trading environment during the course of the past 12 months which has been exacerbated by a further downturn and general tightening of the credit markets.”
He added: “I personally addressed the head office staff earlier today. They are understandably concerned about their own position. We have also held telephone conference calls with all of the area managers with a view to ensuring that the full support of the shops’ workforce is continued. We fully appreciate the difficult position in which the staff find themselves so soon after Christmas. We are grateful for the assistance that we have received so far.
“The Company is trading as normal at present while all options are considered. This has involved contact being made with the essential suppliers, many of whom have been unpaid for some time. We are now looking at the viability of the business with a view to securing a going concern sale.”
Adams was unavailable for comment.