Fashion retailer Internacionale Retail Limited has been sold out of administration in a pre-pack deal, preserving 1,550 jobs.
The business and assets of Internacionale were sold as a going concern to Internacionale UK Limited, a newly formed company.
Tom Jack and Samuel Woodward of EY (Ernst & Young LLP) were appointed as joint administrators on 12 July 2013.
Jack, partner at EY, said: “A sale has been completed that sees the majority of the Internacionale business, including 114 of its stores, its head office and its finance operation, being sold to Internacionale UK Limited.
“The business will continue to trade without interruption, all of the 1,550 jobs have been transferred to the new owner and the future of Internacionale on the UK and Ireland high street has been safeguarded.”
Prior to entering administration, Internacionale operated 132 stores through the UK – administrators confirmed that the 18 stores not included within the sale “will close with immediate effect.”
Jack said: “High street retailers have faced unprecedented conditions over recent years, and the market for fashion clothing has become increasingly competitive.
“The business has been significantly loss making over recent years and although the directors have sought to restructure and reposition Internacionale, with significant cash investments from shareholders, it has not proved possible largely because of the high fixed costs of the business.
“This has resulted in the retailer being unable to continue to operate outside of administration.”
The new owner will honour customer gift vouchers, orders where part payment deposits have been made for goods, and valid returns.
On Monday (15 July), business secretary Vince Cable announced an independent review into the process of pre-pack administrations, to be led by Teresa Graham, with results due in spring 2014.