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Jane Norman in administration again

26 June 2014

The Cardiff-based fashion and accessories retailer, Jane Norman,  has gone into administration for the second time in 3 years.  The first time it went into administration in June 2011 it employed 1600 people in 89 stores.  

The Edinburgh Woolen Mill bought a chunk of the estate out of administration which appears to have been afflicted by the same problems 3 years on.  The company now only employs 150 people out of 24 stores.  The firm also has some stores in Mainland Europe and South East Asia.  

A Jane Norman spokesperson said that the High Street had suffered a difficult trading period for the last 7 years and it was now looking to restructure the business to focus online and in international concessions.

Administrator, Les Ross, partner at Grant Thornton, added: "We intend to continue trading the stores for as long as possible with a view to achieving the best outcome for all concerned, in particular those people based in the stores. It is likely, however, that store closures are inevitable."

So basically, Jane Norman is to disappear from the High Street. The growth of online shopping, especially women's fashion, is continuing to shape the future of retailers. Every mainstream retailer has to have a significant web presence to complement their street presence.    

Recently retail sales appear to have slipped a little as wages growth is still slow.  The latest CBI distributive trade survey found that retail sales fell to a seven month low in May, with just a positive 4 per cent balance of retailers saying sales volumes were up, against an expected 29 per cent. This is also much lower than 16 per cent in May and 30 per cent in April.