1,000 jobs to be cut at fashion retailer

1,000 JOBS are set to go at menswear retailer Austin Reed following its administration. Joint administrators at AlixPartners said they had explored all options for the future of the business but had been unable to sell certain assets of the business.

A sales process supported by creditors over approximately five weeks saw no viable being received, despite suggestions that retail heavyweights including Mike Ashley of Sports Direct fame were interested in the business.

Stores at 120 locations are expected to close by the end of June, affecting 1,000 staff. The group employed a total of 1184 staff across its network.

Five concessions of the Thirsk retailer have been sold, with 28 staff transferred, and the Austin Reed and Country Casuals brands were sold to Border IP.

Founded in 1900, the fashion retailer, headquartered in London with its main support services based in Thirsk, North Yorkshire, had 100 standalone stores and 50 concessions throughout the UK and Ireland.

Peter Saville, Kevin Coates and Catherine Williamson of AlixPartners were appointed on 26 April 2016.

Mr Saville, joint administrator, said:”We have explored all options to sell the business since our appointment and continued to trade the business with the support of the secured creditors in what is clearly an extremely challenging retail environment.

“Despite a significant number of interested parties coming forward during this period it became clear as the process progressed that a viable solution which kept the business whole was not forthcoming.

“As a result we have made the difficult decision to cease trading the business and commence a wind-down of the estate. We would like to take this opportunity to thank all employees for their support and efforts during this unsettling period and wish them well for the future.”