Blue Inc. is to undergo rigorous restructuring on the back of poor sales growth. The fashion retailer currently trades from around 232 stores across the country and is looking to close around 60 of them.
The company, one chaired by ex-M&S boss Sir Stuart Rose, has filed a notice at the High Court to appoint Leonard Curtis as administrators to A.Levy & Son Limited.
It’s understood that A.Levy owns the leases to Blue Inc’s stores. The closures put approximately 500 jobs at risk.
The decision will enable the London-based retailer to hone in on its online and international operations
"Online is becoming an increasingly big part of the business,” said Chief Exec Steven Cohen. “Given the strength of online and the changing environment on the high street we decided now was the right time to evaluate the store portfolio.
"We're investing in areas of growth for the future, as well as continuing to support those parts of the retail estate where Blue Inc has a strong customer base. The core business and store estate remains profitable," Cohen added.
Most closures are expected to come from Blue Inc's Officers Club, the brand it acquired in 2011.
The fast-fashion chain, which opted out of its IPO plans in 2014 due to challenging market conditions, saw like-for-like sales grow 3% over Christmas helped by the larger stores and online sales, but stunted by the mild weather that is affected apparel retailers across Europe