Staff at Atlantic Fashions have contacted Drapers to say they still have not received redundancy letters or their P45's after they were promised they had been sent out last week.
Atlantic Fashions' parent company Acton Farm told Drapers last week that it had sent redundancy letters to staff advising them to contact the Work and Pensions department because the company had no funds with which to pay them. The stores closed down in October and problems have been exacerbated after a proposed merger with MK One failed to complete before MK One collapsed.
But staff have contacted Drapers to say the letter hasn't yet arrived. Without a P45 or redundancy letter the staff are unable to claim compensation, benefits or get another job.
A spokesman for the value chain said that Andrew Bastock, the sole director of Acton Farm, had signed the letters, at the request of owner Bali Singh, last week. Bastock is understood to be "unhappy" that the letters have not been sent out and intends to look into why.
The spokesman added that a mystery buyer for Atlantic Fashions's assets has emerged this week, but it is unclear whether Acton Farm has any assets.
Atalantic Fashion is expected to go into liquidation next week following a winding up order issued by one of its suppliers Pinstripe Clothing.