Update: 27th March 2017 - 72 stores have been acquired by private equity firm, Endless, in a pre-pack administration deal, saving 840 jobs in the UK. The deal was announced on Saturday with joint administrators, Will Wright, Steve Absolom and Blair Nimmo, from KPMG appointed on Friday.
Unfortunately the remaining 25 stores and six concessions will close, resulting in 262 employees being made redundant. If you are an employee affected by the administration, please watch the video below for further advice.
15th March 2017: The high street chain has attempted to find a buyer over the last few weeks however has now filed a notice of intention (NOI) to appoint an administrator. Jones has struggled with rising costs amid difficult trading conditions of late. The fall in the pound after the Brexit vote last year as well as the increase in national minimum wage have affected the company's cash flow.
With the NOI in place, the company is protected against creditors looking to retrieve debt, however reports suggests it is in talks with potential buyers and looking to secure a sale.
According to sources, a creditor filed a winding up petition last week.
It is not clear whether the company will be put into a pre-pack administration deal or sold as a going concern. KPMG is advising the company on the process.
Jones has been trading for 160 years and now operates around 100 shops across the UK and 800 employees. It is owned by private equity firm, Alteri.
The NOI to appoint has given the company much needed breathing space and ensures creditors cannot make a claim for ten days. Hopefully a sale can be arranged in time.
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee of an insolvent business. There is a link at the end of the video to the Government website which expands further on what you need to know. Please contact KPMG if you have any specific questions.
Categories: Pre Pack Administration