Embattled fashion retailer Joy has been rescued from administration saving 230 jobs from being lost.
Louche London, the company’s owner, bought Joy out of administration in a pre-pack deal which prevented the company from falling into liquidation.
Despite avoiding complete collapse, 11 stores have been shut and 78 jobs have been lost during the administration process.
This is the second time in 10 years Joy has entered administration having collapsed in 2008. Rising rents and business rate hikes are reportedly responsible for the retailer’s financial woes.
“With the majority of the retail stores remaining open and with many jobs saved this is an excellent demonstration of why pre-packaged sales from administration will continue to have a place in rescuing businesses,” partner at KRE Corporate Recovery which handled the administration Paul Ellison said.
Joy becomes the latest in a raft of fashion stores to fall into administration. Store Twenty One, Jaeger, Brantano have all succumb to a similar fate in recent months, as the weak pound and rising domestic costs test the financial stability of many fashion retailers.