The clothing retailer has been bought by East Lifestyle Limited via a pre-pack administration deal, saving 550 jobs across 82 stores. Unfortunately, 19 outlets around the UK will close – resulting in the loss of 155 jobs. The company has contacted all employees affected. For more information on employee rights in insolvency, please see our video at the bottom of this page.
Geoffrey Bouchier and Philp Duffy of Duff & Phelps were appointed joint administrators to the business and achieved the sale upon appointment. Bouchier commented, “East Limited had suffered losses in the past few years due to the continuing difficult economic climate and also the shift in consumer spending to different channels away from the traditional high street stores.” “The restructuring process has resulted in the continuation of viable stores and the safeguarding of the majority of the employees and ensures that the business is financially secure for future trading.”
- The following stores will be closing: • Brighton • Exeter • Belfast • Glasgow • Windsor • Hereford • Inverness • Jersey • Southampton • Marlow • Morpeth • Richmond • Kendal • Cheshire Oaks • Harpenden • Southport • Carmarthen • Wilmslow • Witney Concessions at the following will also close: • McEwans of Perth • Barbours of Dumfries • Clerys of Dublin • Quadrant in Chelmsford While a few stores will be closing, the majority of shops (as well as jobs!) have been saved.
This wouldn’t have been possible if the company went into liquidation or even administration. Pre-pack administration allows a company to be bought by a third party or new company quickly to ensure the business can continue running smoothly and employee contracts can be transferred over. Employee rights in insolvency If you are an employee of the business, please listen to the video below which explains your rights as an employee of an insolvent business.