Internacionale enters administration again
The high street store chain, which has 89 outlets across the UK, has called in administrators from accountancy firm PwC after seeing continued poor trading and increasing creditor pressure. The retailer employs around 1,000 staff.
Having originally gone into administration in the summer of last year, Internacionale was saved in July after the company was sold in a pre-pack deal involving existing shareholders.
The owners engaged advisers earlier this year to produce a turnaround and contingency plan which led to 90 redundancies being made, mostly at head office. However, continued poor trading and increasing creditor pressure, particularly from rating authorities and landlords, meant the owners were unable to support the business and opted to wind it down.
Bruce Cartwright, joint administrator and partner at PwC said: “The company directors have worked with key stakeholders to try and find a solution to preserve the business. However, these efforts have proved to be unsuccessful against the backdrop of a fiercely competitive retail sector which, despite the improving economic conditions, can be unforgiving to businesses in financial distress.”
“We are currently working with management to agree an orderly wind-down of the company, but we welcome any approaches to purchase parts of the store portfolio and safeguard jobs. We intend to continue to trade over the coming weeks in order to sell as much of the retail stock as possible and maximise the return to creditors. Staff have been –and will continue to be- paid.”
Unless a buyer can be found, the administrators said further redundancies and store closures will be inevitable.
Cartwright added: “The company and the administrators are making every effort to help staff through this difficult transition.”
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