MCR administrators shut five stores at Vergo Retail

MCR administrators shut five more stores at Vergo Retail this week, bringing
its total of closed stores to nine with already sold.

Sarah Bell and Steven Muncaster from MCR, were appointed joint administrators
to the department store business on 7 May 2010.

The administrators said negotiations with prospective purchasers will
continue on the remaining ten stores.

Sarah Bell, partner at MCR said: “Given the tough economic climate and the
financial challenges hitting the UK’s retail industry, certain Vergo stores can
no longer be sustained.

“I must reiterate that negotiations are still in progress on a number of
stores still operating, and can not rule out a sale of the stores until all
avenues have been exhausted.”

If the remaining ten stores cannot be sold their final day of trading will be
26 June 2010.

Approximately 482 employees have been made redundant at the retailers which
previously employed 942 people.

Robbs department store in Hexham was sold by the joint administrators to
rival J E Beale earlier this month.

Further reading:

MCR
administrators sell store at Vergo Retail

Vergo
Retail administrators hold sale to fund business

MCR
appointed administrators to Vergo Retail