Rescue deal agreed for Barratts Priceless
BARRATTS Priceless founder Michael Ziff has struck a deal to save more than 1,000 jobs at the Yorkshire company.
However, more than 50 outlets are to close with the loss of 680 jobs after Mr Ziff’s Barratts Trading agreed the deal with the Bradford-based business’s existing management team.
The company went into administration last month, blaming a downturn in consumer spending. Around 1,600 jobs have already been lost after attempts to find a buyer for its concessions business failed, but this did not affect the stand-alone stores.
The rescue deal means it is the second time Mr Ziff has bought the struggling chain out of administration in the past three years.
The existing management team has bought 89 Barratts Priceless stores and the ecommerce business from administrator Deloitte for an undisclosed sum, but will close a further 39 shops and 14 concessions. This is in addition to the closure of 18 stores before Christmas.
Daniel Butters, joint administrator and partner in Deloitte’s restructuring services practice, said: “We are delighted to have negotiated a deal, which will secure the employment of over 1,100 employees and ensure the Barratts and Priceless brands continue, especially given the adversity which has beset the High Street over recent months.”
The 1,184 jobs saved are spread across the UK, Ireland and the company’s Bradford head office.
Michael Ziff, chief executive of Barratts Trading, said: “I am delighted that we have been able to conclude this deal and save as many jobs as we have. The last few months have been very challenging but we have a great team in place.”
A team of lawyers from Leeds law firm Walker Morris acted for Barratts Trading, led by head of corporate, John Hamer, and finance partner Peter Considine.
Rachel Blake and Claire Askew of Walker Morris’ finance group led on insolvency aspects and partner Andrew Moodie led on property aspects.
Other Walker Morris lawyers who worked on the deal were Harry Singh (corporate), David Tinkler and Ben Roden (finance), and Andrew Moodie (property).
It is expected that many landlords could miss out following the deal as some will struggle to relet space.
Stylo, the listed retailer which owned the Barratts and Priceless Shoes brands, previously put the chain into administration, closing down 220 of its 380 stores.
Mr Ziff, who was chairman of Stylo, bought 160 stores from administrators in March 2009.
