Value retailer Internacionale has closed 18 stores after the company was sold as part of a pre-pack administration last week.
The chain fell into administration on Friday (July 12) 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, with the deal safeguarding all 1,550 jobs.
As a result of the deal a large number of Internacionale’s 132 stores and all 1,550 jobs have been saved.
However 18 stores have closed. Those affected include shops in Ballymena, Bootle, Bristol, Chelmsford, Connswater, Doncaster, Dumfries, Greys, Grimsby, Hounslow, Hull, Lewisham, Redcar, Redditch, Sutton, Woking, Wrexham, Yeovil. The stores have been closed with immediate effect.
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.”
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.