Fashion retailer Jane Norman files for administration

More than 1,600 jobs believed to be at risk as the high-street fashion chain with debts of £140m fails to find a buyer Around 1,600 UK workers at the fashion retailer Jane Norman were plunged into uncertainty on Monday when the company filed for administration. Accountancy firm Zolfo Cooper confirmed that it had taken control of Jane Norman, which runs 90 stores in the UK – plus more than 100 concessions within Debenhams. The move came after PricewaterhouseCoopers failed to find a buyer for the group, which sells clothes aimed at 16 to 25-year-olds. Zolfo Cooper is expected to implement a “pre-pack” administration , which could see Jane Norman swiftly returned to private hands. Debenhams and Edinburgh Woollen Mill are seen as the likely frontrunners but it is unclear whether either would bid for the whole company. Last week Debenhams bid for Jane Norman’s brand and stock, but not its individual shops, and is thought to be interested in picking up the concessions within its own stores. Jane Norman currently has debts of £140m, and a pre-pack administration could leave creditors nursing significant losses. There are now more than 5,000 jobs at risk at just three stricken UK retailers – Jane Norman, Habitat and Homeform. Habitat, which employs 900 people, is also under the control of Zolfo Cooper. It sold the Habitat brand and three London stores to Home Retail last week, and is now seeking a buyer for its other 30 UK stores. Homeform, the company behind Moben kitchens and Dolphin bathrooms, has been in administration since last Thursday. Analysts have warned that hundreds of shops across Britain’s high street could close over this summer, as weak consumer spending pushes struggling retailers out of business. The latest retail sales figures showed that the volume of goods sold on the high street fell by 1.4% in May . Economists believe the decline in spending could accelerate through 2011, as meagre pay increases give households little respite from inflation. Retail industry Debenhams Home Retail Graeme Wearden guardian.co.uk

Posted by on June 27, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.