Fashion retailer Internacionale has appointed PwC as administrator as it collapses for the second time in eight months.
Bruce Cartwright, Lyn Vardy and Toby Underwood of PwC were appointed as joint administrators and are working on an “orderly wind-down” of the 89-store retailer but have invited parties interested in buying parts of the business to come forward.
The owners of the business, which plunged into administration last June, had produced a turnaround plan earlier this year with its viability due to be reassessed in March.
Redundancies have recently been made at head office, with 90 jobs axed, however poor trading and increasing creditor pressure, particularly from rating authorities and landlords, led the shareholders to decided to wind down the business through administration, according to a statement from PwC.
Cartwright said: “The company directors have worked with key stakeholders to try and find a solution to preserve the business. However, these efforts have proved to be unsuccessful against the backdrop of a fiercely competitive retail sector which, despite the improving economic conditions, can be unforgiving to businesses in financial distress.
“We are currently working with management to agree an orderly wind-down of the company, but we welcome any approaches to purchase parts of the store portfolio and safeguard jobs. We intend to continue to trade over the coming weeks in order to sell as much of the retail stock as possible and maximise the return to creditors. Staff have been –and will continue to be- paid for their work.
“Unfortunately, unless a willing purchaser for the business or store portfolio is forthcoming, it is inevitable that redundancies and store closures will become necessary as the administration process continues. The company and the administrators are making every effort to help staff through this difficult transition.”
Corporate restructuring specialist FC Fund Managers, led by former Deutsche Bank distressed debt trader Jason Granite, took control of Internacionale last week after buying £35m of debt from chief executive Raj Sehgal.