Thursday, 29 December 2011

D2 Jeans in administration

Scottish-based retail chain, D2 Jeans, has fallen into administration, making 200 staff redundant and putting hundreds of more jobs at risk.

Administrators at BDO LLP have closed 19 stores and laid off the shop workers. 

28 stores are being run as a going concern while BDO look to sell the business in order to try and safeguard the remaining jobs.

James Stephen of BDO  said: "It is unfortunate that the economic climate and extremely difficult trading conditions have significantly affected the retail sector.

"However, we are hopeful of securing a sale of all or part of the business and will continue to trade the business while this is explored."

It is the second time in two years that the chain, originally set up by Scottish entrepreneur Sir Tom Hunter, has gone into administration.  At that time the management bought back some 40 stores out of administration.

Although based in  Scotland, D2 Jeans had stores all around the UK.

Retailers who are having difficulty fulfilling their rental obligations after the Christmas trading period need to think if their business is viable going forward.  It looks like 2012 will be a lean year as well but with rents and rates not yet set to fall significantly a major shakeout of the High Street looks likely.

Contact me on 0131 242 0081 if you are not sure how you can trade in 2012.  A CVA can reduce rental liabilities on non performing shops.

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