JD Sports Fashion has rescued streetwear brand Fenchurch from administration, but all of its staff have been made redundant.
JD Sports Fashion bought the brand and the assets this morning for around £1.5m, but did not buy Fenchurch’s only wholly-owned store in London’s Covent Garden. The store closed this week.
JD Sports Fashion, which comprises the eponymous sports fashion chain and young fashion chain Bank, is expected to issue an announcement in the next few days.
Fenchurch staff have been told of the sale and that all of them are being made redundant. Administrator Tenon confirmed the sale.
JD Sports Fashion was one of a number of bidders for the Fenchurch business, and is understood to have beaten competition from Supergroup, the company behind the young fashion brand Superdry, and young fashion chain Republic.
Fenchurch fell into administration at the end of February blaming cash flow difficulties caused by cotton price rises and delays of product deliveries from China.
It is understood that staff were only advised of the administration when an advert offering the company for sale appeared in the Financial Times at the start of this month.
JD Sports Fashion declined to comment.