Jane Norman into administration

The company closed its UK stores over the weekend

Women's fashion retailer Jane Norman has gone into administration.

The company closed its 90 UK stores over the weekend after it failed to find a buyer for the business.

Administrators have been appointed to the company from US accountancy group Zolfo Cooper.

Debenhams and Edinburgh Woollen Mill have been linked with takeover bids for Jane Norman, which employs 1,600 people and whose clothing is aimed at 16 to 25-year-olds.

Jane Norman has debts of £140m, and has been struggling with depressed sales.

Founded in 1952, it also has about 100 concessions in department stores including Debenhams branches.

It describes its clothing ranges as "sexy and affordable adaptations of catwalk trends".

According to press reports, Zolfo Cooper intends to put Jane Norman into a "pre-pack administration", under which a buyer for the company or its assets has already been lined up in advance, so that the sale can be carried out shortly after the firm has entered formal administration.

The practice has been criticised for leaving creditors unpaid.

Jane Norman is just the latest casualty of reduced spending on the UK High Street.

Last week all but three UK Habitat stores were put into administration, as was home fittings company Homeform, the owner of brands such as Moben, Kitchens Direct and Dolphin.

The most recent official figures showed that UK retail sales fell 1.4% in May.

Clothing retails have also been hit by the rising price of raw materials, such as cotton.

This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Source: http://www.bbc.co.uk/go/rss/int/news/-/news/business-13926277

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