Deal follows administration
Women's clothing retailer Morgan UK has been bought by Morgan DT Distribution, part of French parent Morgan International Participations.

The deal follows last week's revelations that the fashion chain had gone into administration.

Trading for the first six months of the financial year to June had been poor, with like-for-like sales down 19.1 per cent to£11.8 million.

Administrators KPMG said it had received a number of expressions of interest for the chain, but felt Morgan DT Distribution ownership offered the best future for the UK business.

Morgan International Participations chairman and chief executive Dominique Damon said: 'This acquisition forms part of our strategy to directly control the brand's major distributors. Similar acquisitions in markets such as Holland, Belgium and Luxembourg resulted in a 27 per cent growth for the last fiscal year. The new operation will benefit from significant synergies.'

Four hundred staff members will be re-employed, as well as 50 employees at the company's head office in London.

The sale includes 10 of the fashion retailer's standalone stores and 47 concessions.