The owners of branded young fashion mini chain Hurley are in the process of buying back part of the business from administration, after it was hit by the sudden withdrawal of credit insurance limits.
Hurley Menswear, which had three multi-brand stores in Wigan, Bolton and Manchester, four Lacoste franchises and two Henri-Lloyd franchises, went into administration last week.
Owners Mark Hurley and Kim Taylor said they had been left unable to get enough stock for the franchise shops to make them viable after the company’s credit insurance limits were pulled overnight to zero. A reduction in the retailer’s overdraft facility with its bank is thought to have compounded the problem.
Hurley and Taylor have already negotiated to take back the Bolton store from the landlord. They are in discussions about taking back the Wigan and Manchester stores. Lacoste is believed to be negotiating to gain control of the franchise stores previously operated by Hurley in Liverpool, Leeds, Manchester city centre and Manchester Trafford Centre. Henri-Lloyd is understood to be in similar negotiations over its stores in Liverpool and Leeds.
Mark Hurley slammed the credit insurers who have been pulling the amount of cover available to suppliers since the economic downturn began.
“There has been no legitimate reason given for this action. Our suppliers have been incredibly supportive of us throughout this difficult time and the brands involved in the franchise operation have tried to work through every possible scenario with us. “I wish them well with the stores going forward.”