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Austin Reed to appoint administrators today

Austin Reed Group is set to appoint AlixPartners as administrators today.

The retailer filed notice of its intention to appoint administrators at the High Court on Friday, less than a week after it was acquired by Alteri Investors.

At the time, a source told Drapers that the firm may use the notice as a “bargaining tool” to help in negotiations with landlords and investors.

Drapers exclusively revealed Alteri acquired the struggling business on April 15. Approximately 1,000 jobs are thought to be at risk.

Alteri first became involved with Austin Reed Group when it provided a three-year loan in May 2015 to buy new stock and invest in the group’s online operations.

Alteri was formed in October 2014 as a joint venture between US private equity group Apollo Global Management and Gavin George, former chief executive of restructuring specialist GA Europe, to invest in struggling retailers on the UK high street. It acquired footwear retailers Brantano and Jones Bootmaker in October 2015 and Brantano entered administration in January 2016. Alteri later bought back 81 stores and 59 concessions.

Austin Reed Group appointed turnaround consultancy AlixPartners, a year after the retailer entered into a company voluntary arrangement (CVA) and closed more than 30 underperforming stores.

Property consultancy GCW has been appointed on property matters by the administrators to Austin Reed.

 

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