Clothing company closes with Blue Inc taking over 46 stores
The Officers Club clothing outlet has become the latest victim of the troubled retail sector, going into administration with the loss of 500 jobs.
Grant Thornton had been appointed as administrator, and roughly half the business, representing the remaining 400 staff employed, has been sold to Blue Inc.
Blue Inc will take on 46 of The Officers Club stores in a deal reportedly worth £5m. The clothing firm's 56 other outlets, and the warehouse, have closed with immediate effect.
Officers Club, which is based at Cramlington, near Newcastle, was facing difficult trading conditions, joint administrator Joe McLean said. "The company experienced particularly challenging trading conditions in 2010 with raw material costs rising significantly. It was not possible to pass these increases on to customers given the extremely price-sensitive nature of the UK retail arena.
"The directors did not see any improvement forthcoming in the early months of 2011 and, mindful of their legal responsibilities, concluded reluctantly that administration was in the best interests of the company's creditors and other stakeholders.
"It is regrettable that a purchaser for all of the company's business and assets could not be located but we have managed to find a buyer for almost 50 per cent of the business, securing the continuing employment of 400 individuals."
The company previously went into administration just before Christmas in 2008. Then administrators PricewaterhouseCoopers sold the business to management, with only 32 stores closing on that occasion.
Blue Inc has 98 stores, meaning the purchase will significantly increase its presence on the UK high street.