Blue Inc struck by £15.6m loss immediately before CVA

Blue Inc

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”.

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