UK: Internacionale enters into administration
High street fashion retailer Internacionale has entered into administration for the third time.
The chain, which operates 89 stores across the UK and employs around 1,000 staff, fell into administration for the first time in 2008. The second time, in July last year, the company was sold as part of a pre-pack administration after efforts to restructure the business failed.
Bruce Cartwright, Lyn Vardy and Toby Underwood of PricewaterhouseCoopers were appointed as joint administrators of Internacionale on Friday (28 February).
Earlier this year, the owner of Internacionale had hired advisers to produce a turnaround and contingency plan in a bid to secure support for the business until late March, when the company's ongoing viability would be reassessed. As part of this exercise, 90 redundancies were made, mostly at its head office.
Continued poor trading and increasing creditor pressure, however, meant shareholders could no longer support the business, the administrators said.
"The company directors have worked with key stakeholders to try and find a solution to preserve the business," said Cartwright. "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.
"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."
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