Budget fashion chain Internacionale Retail has been sold out of administration in a pre-pack deal safeguarding all 1,550 jobs.
Insolvency partners Tom Jack and Sam Woodward of Ernst & Young in Manchester were appointed joint administrators of the British clothing retailer today and immediately sold it to a new business set up by its former directors, Internacionale UK Ltd as a going concern.
Joint administrator Tom Jack, commented: “The high st fashion clothing business has been significantly loss making over recent years and although the directors have sought to restructure and reposition Internacionale, with significant cash investment from shareholders, it has not proved possible largely because of the high fixed costs of the business. This has resulted in the retailer being unable to continue to operate outside of administration.”
He added: “However, we are pleased to announce that a sale has been completed that sees the majority of the Internacionale business, including 114 of its stores, its head office and its finance operation, being sold to Internacionale UK Limited.”
EY said 114 of Internacionale’s 132 stores, head office and finance operation had been acquired by the new business. The remaining 18 stores will close immediately and all 1,550 staff at the company have also been transferred over.
Internacionale has stores across the region with 10 sites in Greater Manchester plus two in Liverpool, Warrington, Widnes, Bootle, and Burnley amongst others. EY maintains that the new owner will honour customer gift vouchers, orders where part payment deposits had been made for goods, and valid returns.