Blue Inc endured a soaring increase in losses in the months before it filed for a company voluntary agreement (CVA).
According to accounts filed at Companies House, the embattled fashion retailer recorded losses of £15.6 million in the 18 months to July 2 last year, compared to the £2.61 million loss recorded in the previous 18-month period ending December 30, 2014.
Blue Inc also raked in £23 million in sales and £12 million in gross profit during the period, but it held a net liabilities position of £13.4 million compared to the £1.4 million in net liabilities in the previous period ending 2014.
Directors at the retailer estimated the CVA in March – which included plans to shut 34 unprofitable stores out of 127, and reduce rents – released around £9 million in debt obligations.
In the Companies House files, the Blue Inc said it would seek to navigate the “highly competitive market” risk by “offering unique designs, competitive pricing and providing a high level of customer service”.