Jobs and stores will be saved under the two deals, both of which allowed existing owners and management – Peter Simon and Tarak Ramzan respectively – to carefully cherry-pick the parts of their struggling businesses that they wanted to buy out of administration.
Although the potential alternative to a pre-pack is for firms to disappear entirely, it has always been a controversial insolvency process. Those that involve current owners, rather than a third-party buyer bringing in fresh thinking and funding, have never sat right with me.
Monsoon Accessorize and Quiz both blamed coronavirus for their pre-pack administrations – and, admittedly, the impact of lockdown and resulting store closures will have wiped millions of pounds off their top lines.
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