Young fashion retailer USC is planning to close around a third of its stores as it enters administration, putting hundreds of jobs at risk.
The retailer filed a notice of intention to appoint receivers at the High Court on Tuesday, The Telegraph reported. It is thought that more than 1,000 staff are employed at 90 USC stores. The move could result in about a third of the retailer’s worst-performing stores being closed, with the rest continuing to trade.
According to STV, staff at a USC warehouse in Dundonald, Ayrshire, were made redundant yesterday. At least 100 staff were based at the site.
Duff & Phelps and Gallaghers have been lined up to handle any wind-down. According to The Telegraph, the decision to file was prompted by a demand from fashion label Diesel over unpaid debts.
USC is the second young fashion retailer to enter administration this year, after Bank fell into administration on Monday following its sale to restructuring specialist Hilco at the end of last year.