Fashion retailer Lakeland which started in the Lake District has entered administration. Note it is not connected with the Lakeland kitchenware chain.
Up to 200 jobs are at risk at Lakeland after specialist administrators McTear, Williams & Wood were appointed last Friday.
The Management said they are trying to save as many stores, of which there are 18 currently trading, and jobs as possible.
Lakeland claims to be the UK’s largest specialist retailer of fine leather goods and has been owned by the Standring family for almost 50 years.
It has 22 stores across the country including on Market Place, Ambleside, Lake Road, Bowness, and also on Stricklandgate and at K-Village in Kendal.
Four stores, including the one at K-Village, closed immediately at the weekend.
The other 18 have closing down sales and are faced with an uncertain future.
“We are hoping to sell as much of our stock to pay creditors which will hopefully allow us to save as many stores and jobs as possible," said managing director Martin Foster.
UPDATE 17th July 2014 - It has come to light that the company was sold in a pre-pack deal, shortly after entering administration. The assets were sold to Felldale Ltd, a newly formed company set up by Operations Manager, Martin Forster. Unsecured creditors are expected to receive 25p in the £1.
The company blamed high lease costs and a poor weather conditions for its collapse. Could the business have been saved by a CVA?? Possibly as lease costs can be reduced in a CVA by vacating unprofitable stores. See this page for more details