Young fashion chain Blue Inc has filed a notice at the High Court of its intention to appoint Leonard Curtis as administrators to it subsidiary A.Levy & Son.
As reported by Drapers yesterday (January 7) the retailer is planning to close 60 to 65 of its 232 UK shops, resulting in 500 job losses, in order to focus on more profitable stores and its online business.
A source close to the situation has indicated Blue Inc could seek to dispose of the required leases by putting A.Levy, which owns an undisclosed number of Blue Inc’s leases, into administration. The business is expected to get rid of the unwanted stores and buy back the shops within A.Levy it wants to continue to trade.
After filing a notice of intention to appoint administrators on Wednesday, A.Levy was granted 10 days protection from its creditors.
The retailer’s trading name and brands are owned by separate subsidiaries within the business.
Chief executive Steven Cohen has stressed that Blue Inc as an entire business was not going into administration.
Blue Inc had previously appointed audit and property adviser Capa to attempt to renegotiate leases with landlords.