Value retailer Internacionale has been sold as part of a pre-pack administration, with the deal safeguarding all 1,550 jobs.
The chain fell into administration today with Thomas Andrew Jack and Samuel James Woodward of Ernst & Young appointed as joint administrators. However immediately following this the business and assets were sold.
As a result of the deal a large number of Internacionale’s 132 stores and all 1,550 jobs have been saved.
The new company, Internacionale UK Limited has been backed by the existing shareholders of former company Internacionale Retail Limited.
Joint administrator Jack said: “High street retailers have faced unprecedented conditions over recent years, and the market for fashion clothing has become increasingly competitive.
“The business has been significantly loss making over recent years and although the directors have sought to restructure and reposition Internacionale, with significant cash investment from shareholders, it has not proved possible largely because of the high fixed costs of the business. This has resulted in the retailer being unable to continue to operate outside of administration.”
However Jack added that 114 of the retailer’s stores, its head office and finance operation have been saved due to the deal.
“The business will continue to trade without interruption, all of the 1,550 jobs have been transferred to the new owner and the future of Internacionale on the UK and Ireland high street has been safeguarded,” he said.
The remaining stores that are not included in the sale will close with immediate effect.