Jobs go as Internacionale folds again
MORE than 100 jobs in the region will be lost following the second failure within a year of the Internacionale women’s retail chain.
The former management team picked up most of the assets from administrators EY last summer, saving some 1,500 jobs.
But another set of administrators, this time from PwC, have been appointed to the new business Internacionale UK.
The move, blamed on the flat economy, has prompted the closure of 25 of the group’s 89 shops and the loss of 324 of the remaining 1,000 jobs. Further closures are expected unless a buyer is found.
All the losses are in the North with some 131 jobs going in the North West at shops in Burnley, Bury, Carlisle, Liverpool, Middleton, Oldham, Rochdale, Salford, Warrington Wigan and Workington. In Yorkshire 105 people are losing their jobs at seven shops in Barnsley, Bradford, Leeds, Sheffield, Scarborough and Wakefield.
PwC said Internacionale UK, owned by former chief executive Raj Sehgal, managing director Naresh Abrol and finance director William Milton, brought in turnaround advisers at the start of the year who made 90 redundancies, mostly at the head office in Glasgow.
It said: “Due to continued poor trading and increasing creditor pressure, particularly from rating authorities and landlords, the shareholders have decided they can no longer support the business and have taken the difficult decision to wind down the business through administration.
Joint administrator Bruce Cartwright said: “The company directors have worked with key stakeholders to try and find a solution to preserve the business. However, these efforts have proved to be unsuccessful against the backdrop of a fiercely competitive retail sector which, despite the improving economic conditions, can be unforgiving to businesses in financial distress.
“We are currently working with management to agree an orderly wind-down of the company, but we welcome any approaches to purchase parts of the store portfolio and safeguard jobs. We intend to continue to trade over the coming weeks in order to sell as much of the retail stock as possible and maximise the return to creditors. Staff have been – and will continue to be – paid for their work.
“Unfortunately, unless a willing purchaser for the business or store portfolio is forthcoming, it is inevitable that redundancies and store closures will become necessary as the administration process continues. The company and the administrators are making every effort to help staff through this difficult transition.”
