Cruise has filed an intention to appoint administrators after it emerged that chief executive James Pow had resigned from the troubled designer mini-chain.
The 12-store designer retailer, which had its debt sold on to restructuring specialist Hilco last week, filed a notice of its intention to appoint an administrator at Glasgow Sheriff Court on December 14.
The documents were filed by solicitors DLA Piper based in Glasgow.
Cruise declined to comment when contact by Drapers this morning. However filing a notice of intent to appoint administrators does not necessarily indicate the business will be put into administration.
Pow took over as chief executive of Cruise in October last year after six months as non-executive chairman but resigned earlier this week. Duncan Macrae, understood to have been finance director of the Cruise business, has also resigned.
Cruise, which completed a pre-pack administration in mid-2009, is understood to have had its financial woes added to by the recent bad weather.The retailer, which stocks men’s and women’s premium brands such as Prada and Gucci, is largely based in Scotland and the North, the areas worst affected by the snow.
Accounts filed at Companies House for Cruise Fashion, Cruise’s parent company, showed the business had sales of £21.4m for the period between May 15, 2009 to January 30 this year. It made an operating loss of £315,000 over the period, but this was blamed on an exceptional cost of £478,000 relating to the reorganisation of the business post administration.