More than 300 retail jobs have been saved at the fashion retailer Cruise after Scottish entrepreneur and former Sports Division boss Sir Tom Hunter acquired ten of the company’s stores.
The move came just one day after John Reid and Lee Manning of professional services firm Deloitte were appointed as joint administrators of the business.
Although ten stores have been saved by Sir Tom’s actions, the outlets in Dundee and Livingston were allowed to close down.
Cruise fell into financial difficulty following its reorganisation in May last year and has suffered as a result of the recent downturn in the retail sector.
The decision to put the business into administration was made after a buyer could not be secured.
Reid, who is head of Deloitte Restructuring in Scotland, commented: “As part of the restructuring of the company, we have concluded an immediate sale of the business and assets for ten of the Cruise stores to a new venture led by Sir Tom Hunter.
“This sale not only secures the future of the brand in the UK but also preserves over 300 jobs.”
Hunter’s company West Coast Capital (WCC) announced earlier this month that it had sold shoe retailer Office to private equity firm Silverfleet in a deal thought to be worth around £150 million.
The full-year accounts for the shoe specialist, which was owned by WCC for seven years, showed total sales in 2009 to be worth £143 million and EBITDA of £18.5 million.