Bay Trading has been bought out of administration by the producers of brands Tigi-Wear, Viz-A-Viz and iZ.

It is understood that members of the Loomba family, the owners of Rinku Group, have bought the Bay Trading name and other parts of the business on undisclosed terms.

The new owners will continue to trade Bay Trading’s 80 concessions and are understood to want to keep around 30 of the retailer’s 175 stores open. Staff at Bay Trading’s head office in Hatfield were made redundant last Friday.

Bay Trading, which had 1,800 staff, hit the buffers in April, two days after parent company Alexon revealed the brand had made a £7.2m full-year loss before exceptionals. Like-for-likes fell 16 per cent.

The Rinku Group was established in 1980 and has three divisions - wholesale, retail and own-label. It also supplies UK retailers with own-label product.

Deloitte was appointed as administrator to Epcoscan, the company that trades as Bay Trading.