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A classic case of over trading based on the unrealistic over confidence of Mr Cohen .

Blue inc once owned by the Levy family, introduced the brand to replace the failing mister buy right chain.

The growth of online is no more than a smoke screen along with the other reasons for failure. this is a simple administration in order to close the loss making stores and retain the profitable units with a reduced head office cost.

Who will pay for the mistakes made by Mr Cohen?

Suppliers will now be offered a % of the money owed on unpaid stock which will fund the very profitable closing down sales.

Landlords will not have been paid the December quarter and will not be paid during the closing down sales.

The real issue is that Blue inc is not a sustainable brand offer, the Product is poor and the brand means nothing more than low price, where does an offer like this go when the market and competition toughens? They have to lower prices further which does not generate sustainable volume growth to cover the falling gross margins.

Pedalling the same bike faster in the same direction is not going to work, the brand which has no kudos at all has no real position in the market outside of price and that is not enough.

In short this is the beginning of the end and within 2 years I predict that the investors will replace Mr Cohen and sell what's left for what they can get unless he recognises that Blue Inc is finished as a trading name and needs to be replaced with a new credible fashion offer where the price is not the sole reason for making a purchase.