Deluxe Retail which trades as budget fashion chain “Madhouse” has entered administration, putting around 700 jobs at risk.
Alexander Lawson Jacobs has been appointed administrator following a disappointing festive trading season.
In the group’s last corporate accounts, Deluxe Retail declared a net loss of £196,414 based on a £29.3 million turnover for the 12 month period to the end of January 2011.
This compared to a £156,912 profit for the same period the previous year.
The directors of the business paid themselves £16,000 more in the last reported accounting year ending 31 January 2011, with director remuneration increasing from £80,000 to £96,000 in the year before the group collapsed.
However, in August 2011, the company’s auditor Alan Kaye of BBK Partnership said in his opinion, the company had the ability to continue as a going concern despite exceeding assets by £39,402 because the principal creditor was supportive of the firm.
ALJ’s Ninos Koumettou was appointed as the lead administrator for the company which had previously traded as Winter Sky Retail until it changed its name to Deluxe Retail in May 2010.
ALJ is fast developing something of a pedigree in the retail space, having handled the cases of Poundline, Retail Scotia and UK Travelshop in recent months.