EY administrators sell Internacionale as pre-pack
Administrators arrange pre-pack sale to existing backers safeguarding 1,550 jobs
EY ADMINISTRATORS have rescued struggling fashion retailer Internacionale through the sale of a pre-pack administration.
Thomas Jack and Samuel Woodward, partners at EY were appointed joint administrators of Internacionale Retail Limited. The duo sold the business and assets as a going concern, safeguarding about 1,550 jobs.
Fashion retailer Internacionale had about 114 stores across the UK with all of them being sold through the pre-pack. As part of the deal the company will now be known as Internacionale UK Limited and is backed by the existing shareholders. However, all gift vouchers and orders where part payment has been made will be honoured.
Tom Jack, joint administrator, said: “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.”
“However, we are pleased to announce that a sale has been completed that sees the majority of the Internacionale business, including 114 of its stores, its head office and its finance operation, being sold to Internacionale UK Limited.”
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.
“The remaining stores that are not included in the sale will close with immediate effect.”
Internacionale closed 18 stores across the UK on 7 July, prior to its administration.