PracticeConsultingForty more redundancies at Cherub

Forty more redundancies at Cherub

Almost 40 people have been made redundant at a children's retailer after receivers at KPMG Corporate Recovery were unable to sell the business as a going concern.

According to KPMG, the redundancies come because ‘administrative receivers have not been able to sell the business as a going concern’.

This is the second wave of redundancies faced by Cherub after 50 people were laid off in June. However, the company continues to employ 80 people.

Admininstrative receiver Allan Graham said the business would likely be gradually wound down over the next few weeks and the remaining staff would fulfil Cherub’s orders for the Autumn/Winter season.

He added: ‘Whilst there has been significant interest in the business over the last three months, the uncertainties and difficult trading conditions in the textile industry have meant that no purchaser for the business has been found.’

Cherub, which makes children’s clothing and nightwear, went into administrative receivership in June. The Leicestershire-based succumbed to negative trading conditions including a strong pound, competition from overseas and cheap imports. Originally 230 people were employed and had a turnover of £1.5m in November 2000.

Links

KPMG’s website

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