About 1,230 jobs are to be lost at fashion chain Bay Trading after administrators today (20 May) managed to find a buyer for around half of its 255 outlets.

Administrators Deloitte said the deal would safeguard 566 jobs, but admitted the remaining 125 stores would now be closed.

The buyer of the 45 Bay Trading stores and 85 concessions, along with its stock and intellectual property, is fashion retailer Rinku Group which already owns chains such as Tigi-Wear, Viz-a-Viz and iZ.

"We are pleased that we have been able to secure Bay Trading's future," said Lee Manning, joint administrator and partner at Deloitte.

He added: "It will be predominately a concessions-based business, with a number of stores also continuing to operate.

Epcoscan Limited, which trades as Bay Trading, employed 1,800 people before it fell into administration last month after its credit insurance was withdrawn.

It was owned by clothing retailer Alexon Group, which admitted at the time that the loss making unit "relied upon funding from the rest of the group to continue in operation".

Alexon said the decision to sell its Epcoscan unit provided "certainty" for the rest of the group whose brands include Ann Harvey, Kaliko, Eastex and Alex & Co.

In April Alexon said its full-year pre-tax loss widened to GBP27.7m from GBP12m, with like-for-like sales down 9.1%.

Operating loss at Bay Trading plunged to GBP7.2m from a profit of GBP1.1m a year earlier.