KPMG Restructuring has agreed a sale of UK clothing chain Morgan Retail to Morgan DT Distribution, part of Morgan International Participations.

 

The deal follows the announcement last week that the chain had collapsed into administration.

 

The majority assets sale to Morgan DT includes ten 10 stand-alone stores and 47 department store concessions but not licensee outlets.

 

Morgan DT will re-employ about 400 staff plus 50 workers from the Morgan UK head office in Kentish Town, London.

 

KPMG's PR and communications manager, Richard Griffiths, told just-style: "We had a number of expressions of interest but this was the best one."

 

Griffiths said Morgan DT had already done well following similar deals elsewhere and added: "They can make a successful go of the business."

 

Chairman and CEO of Morgan International Participations, Dominique Damon, said: "This acquisition forms part of our strategy to directly control the brand's major distributors.

 

"Similar acquisitions in markets such as Holland, Belgium and Luxembourg resulted in a 27% growth for the last fiscal year. The new operation will benefit from significant synergies."

 

Morgan has struggled to compete in the competitive market and was also held back by  the fact that most clothing was licensed from its French parent company, which meant it had less flexibility to lower prices.