The Hut Group buys Coggles out of administration
Online retailer The Hut Group has bought premium fashion chain Coggles out of administration.
York based Coggles appointed Begbies Traynor as administrators in May after its directors failed to secure new investment for the business. At the time 30 out of the 60 staff were made redundant and it has now been confirmed that the remaining staff will lose their jobs.
Commenting on the deal, Andy Clay of Begbies Traynor said: "Our primary duty is to bring about the optimum return for creditors and the offer from the Hut Group was an extremely good deal.
"Unfortunately, most of the interest we received was from potential purchasers wanting to acquire the online side of Coggles’ business which represented the bulk of turnover, rather than for its retail outlets. This means that the stores in York have closed and the remaining staff have been made redundant."
Under the deal, The Hut Group has acquired Coggles’ stock and all intellectual property including the brand and domain names. In addition, Coggles will become an online-only retailer as part of the Hut Group’s prestige division.
Clay continued: "Whilst it is sad to see Coggles disappearing from the high street for the time being, and the loss of employment for the remaining staff, it is positive that the business will continue as part of a large and successful specialist online retail group."
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