Fancy dress chain sold in £70k pre-pack deal

Luvyababes, the Manchester-based high street fancy dress outlet, has been bought by its former owners in a pre-pack deal after entering administration owing more than £400,000 to creditors.

The firm, which called in administrators from Leonard Curtis in January, was bought by Okyloki, which is run by Luvyababes founders David and Amanda Williams, for £70,000, with 44 staff transferring to the new company.

Four staff were made redundant.

Luvyababes, which also traded from outlets in Nottingham and Derby, claimed a downturn in high street sales was enough to send the fancy dress shops business into administration.

It said it had suffered from increasing overheads and losses as a result of loss-making stores in Bury and Bolton, according to documents seen by TheBusinessDesk.com.

In the six months to 30 September, Luvyababes made a loss of £350,000.

The firm had one secured creditor, the NatWest bank, which has been paid back.

Administrators say that unsecured creditors are unlikely to receive what it is owed to them.