1,500 retail jobs saved after Internacionale pre-pack
BUDGET fashion chain Internacionale Retail has been sold out of administration in a deal safeguarding more than 1,500 jobs.
Insolvency partners Tom Jack and Sam Woodward of EY in Manchester were appointed joint administrators of the business today and immediately sold it to a new business set up by its former directors, Internacionale UK Ltd as a going concern.
EY said 114 of Internacionale’s 132 stores, head office and finance operation had been acquired by the new business. The remaining 18 stores will close immediately. All 1,550 staff at the company have been transferred over too.
Internacionale has stores across the region with 10 sites in Greater Manchester plus two in Liverpool, Warrington, Widnes, Bootle, and Burnley amongst others.
EY said the new owner will honour customer gift vouchers, orders where part payment deposits had been made for goods, and valid returns.
Tom Jack, joint administrator, said: “High street retailers have faced unprecedented conditions over recent years, and the market for fashion clothing has become increasingly competitive.
“The business has been significantly loss making over recent years and although the directors have sought to restructure and reposition Internacionale, with significant cash investment from shareholders, it has not proved possible largely because of the high fixed costs of the business. This has resulted in the retailer being unable to continue to operate outside of administration.”
“However, we are pleased to announce that a sale has been completed that sees the majority of the Internacionale business, including 114 of its stores, its head office and its finance operation, being sold to Internacionale UK Limited.
“The business will continue to trade without interruption, all of the 1,550 jobs have been transferred to the new owner and the future of Internacionale on the UK and Ireland high street has been safeguarded.
“The remaining stores that are not included in the sale will close with immediate effect.”
Internacionale was headquartered in Scotland.