Struggling fashion retailer Blue Inc could ditch a portion of its 127-store retail estate in an attempt to curb losses.
Insolvency practitioner Begbies Traynor has been instructed by Blue Inc to start a company voluntary arrangement (CVS) which would allow loss-making stores to shut and the debilitating rent bills to be reduced.
If this move is approved by Blue Inc’s investors, significant job losses are expected across the UK.
“In a challenging market it is vital that we ensure our operation runs as effectively and efficiently as possible as we drive the brand to continue to deliver great product, great service and great price,” Blue Inc chief executive Peter Girt said.
“We believe this restructure will allow us to achieve this and protect the interests of our employees, creditors and suppliers.”
Further saving will be made as Blue Inc plans to outsource its warehouse and logistics operations, potentially leading to more job losses.
Begbies Traynor‘s Kirstie Provan added: “We have been working closely with Blue Inc and consider that the CVA being proposed, alongside the wider operational restructuring process, will protect both the business and significant employment and will enable a platform to deliver long-term profitability.
“We have discussed the proposal with a number of key stakeholders and have received strong support.”