Online fashion retailer, Meemi Limited (trading as mywardrobe.com) has been brought out of administration by a pre-pack sale. This result has saved 48 jobs, including a former senior fashion editor at Harpers Bazaar, Carmen Borgonovo.
After on-going poor cashflow and increasing losses, Growth Capital Acquisitions Limited bought the failing business in a pre-pack administration deal. On the 18th November, Leonard Curtis Business Solutions Group were appointed administrators and commented ‘we have completed the sale as a going concern. The outlook for mywardrobe.com is extremely positive’.
The retailer was founded in 2006 by Andrew Curran and has since had a number of cash injections and support to continue trading. However, it eventually ran out of money to continue so administrators were brought in.
Mywardrobe.com is now under a total restructure to accommodate these changes, with the aim to create a successful and profitable business from 2014.
While there is some debate as to whether pre-pack is a suitable insolvency option (as it is often sold back to the directors), it is a very quick process and can get rid of debt, save jobs and allow a business to continue trading.
For more information on pre-pack administration, visit here