Young fashion chain Blue Inc is expected to snap up 47 stores from Officers Club today after the latter is put into administration imminently.
As well as saving about 500 jobs, the deal will enable Blue Inc, which is considering seeking new investment or a flotation, to extend its presence in parts of the country where it is under-represented.
The purchase will take Blue Inc into Scotland, where it has no shops, and strengthen its franchise in the North-east of England and Wales, where it has three and two stores respectively.
The stores being bought are expected to add between £25 and £30m of sales to Blue Inc’s turnover, bringing its revenues up to about £80m.
Blue Inc will also buy the Petroleum chain from Officers Club administrator Grant Thornton. Petroleum is understood to have performed well in outlet centres and Blue Inc will continue to run the business for some time and then decide whether to retain it.
Officers Club’s headquarters in Newcastle upon Tyne will be closed.