Up to 200 staff at value chain Atlantic Fashions are facing Christmas without their wages after a merger between the chain and MK One failed to complete before administrators were appointed.
Staff at Atlantic Fashions contacted Drapers this week to complain that while the chain’s shops had closed in early November and they were informed they had been made redundant, they had not received October wages owed to them and promised to them in a letter from Atlantic’s parent company, Acton Farm.
Confusion surrounding the ownership of Atlantic Fashions has complicated the issue. The staff told Drapers they had been informed a merger had taken place between Atlantic Fashions and MK One in October, when MK One-labelled stock was delivered to Atlantic shops. Both chains are thought to be 100% owned by Bali Singh.
MK One administrator Leonard Curtis said it was aware there had been an intention to merge the businesses but that this had not completed before it was appointed on November 19.
Acton Farm remains active according to Companies House. Accountant Andrew Bastock is listed as the sole director of the business. He was appointed on November 14 for the “specific purpose of putting it into administration” and to sort out issues with staff wages because there were insufficient funds to pay them.
But Bastock said in a statement that he was unable to put the business into administration because he did not have access to company financial data and a winding-up order had been issued by suppliers Pinstripe Clothing and Jojo.
Sources said Acton Farm was likely to go into liquidation within a month.
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