Internacionale UK has entered administration this morning, putting around 1,000 jobs at risk.
As of today, the company has 89 stores and employs around 1,000 staff, having made 90 head office staff redundant last week.
As reported by Drapers earlier this week Bruce Cartwright, Lyn Vardy and Toby Underwood of PricewaterhouseCoopers will be handling the process.
A statement from PwC said Internacionale’s owners had attempted a turnaround and contingency plan earlier this year “to secure support for the business until late March, when the company’s ongoing visibility would be reassessed”.
However shareholders decided to enter administration early “due to continued poor trading and increasing creditor pressure”. It particularly cited “rating authorities and landlords”.
Cartwright, joint administrator and partner at PwC, said: “The company directors have worked with key stakeholders to try and find a solution to preserve the business. However, these efforts have proved to be unsuccessful against the backdrop of a fiercely competitive retail sector which, despite the improving economic conditions, can be unforgiving to businesses in financial distress.
“We are currently working with management to agree an orderly wind-down of the company, but we welcome any approaches to purchase parts of the store portfolio and safeguard jobs. We intend to continue to trade over the coming weeks in order to sell as much of the retail stock as possible and maximise the return to creditors. Staff have been –and will continue to be- paid for their work.
“Unfortunately, unless a willing purchaser for the business or store portfolio is forthcoming, it is inevitable that redundancies and store closures will become necessary as the administration process continues. The company and the administrators are making every effort to help staff through this difficult transition.”