Womenswear chain Jane Norman has gone into administration after failing to find a buyer.
American accounting firm Zolfo Cooper has been appointed as administrator.
In a statement, Zolfo Cooper said: “Following a period of testing trading conditions, the company has experienced severe cash flow difficulties which resulted in the Board requesting the appointment of the Administrators. Discussions continue with relevant parties and further detail will be provided when made available.”
It was reported over the weekend that the firm had been lined-up to oversee a pre-pack administration.
Debenhams is thought to be the front runners to buy the name, stores and stock through the deal. It is not clear what the deal would mean for the chain’s 1,600 staff.
It comes a day after the chain was reported to have kept about 100 of its high street stores closed despite the country basking in the hottest weather of the year so far. Its 90 Debenhams concession stores traded as normal.
Buyers for the ailing fashion chain, which was put up for sale at the start of June, are reported to include Edinburgh Woollen Mill, Debenhams, private equity firm Sun Capital Partners and Aurora Fashion, owner of Oasis, Coast and Warehouse.