Fashion retail chain Internacionale is reportedly set to appoint administrators this week with a view towards liquidating the loss-making business.
The company, which employs over 1,500 staff, is due to appoint administrators from PwC this week, according to The Telegraph.
Last week corporate restructuring specialist FC Fund Managers bought £35m of Internacionale’s debt, taking control of the company. Some 20 staff at the company’s head office were made redundant as a result.
The business will continue to trade while a buyer is sought for its 97 stores throughout the country. The sites will be closed if a buyer cannot be secured.
Internacionale narrowly escaped liquidation in July 2013, when the business and assets of the company were sold as a going concern to former chief executive Raj Sehgal, Naresh Abrol and William Milton.
In July 2013, administrator to Internacionale, Tom Jack of EY, said: “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.”
PwC declined to comment.