Value chain Atlantic Fashions posted a letter to its staff as Drapers went to press, confirming that the business would be liquidated following a court hearing later this month. Parent company Acton Farm is unable to offer its workers any redundancy pay.
The letter, signed by Acton Farm’s sole director Andrew Bastock, explained that the company has no funds with which to pay staff, who have not been paid since October. A liquidator is expected to be appointed on December 22.
The staff, who were told they had been made redundant at the start of November, had initially been promised redundancy pay, notice pay, accrued holiday pay and P45s, but so far none of this has been received.
It is understood the original letter was signed by Martin Muffett, then managing director of Jet Star Retail, which owned value chain MK One before it went into administration last month. Atlantic Fashions’ staff were told a merger had taken place between MK One and Atlantic Fashions, but MK One administrator Leonard Curtis maintained that this merger never completed.
The latest letter advises Acton Farm’s staff to contact the Department for Work and Pensions to claim redundancy pay.