BusinessBusiness RecoveryVergo Retail administrators hold sale to fund business

Vergo Retail administrators hold sale to fund business

The administrators to the clothing retailer are holding sales in 18 stores to generate cash to fund the business

MCR, administrators to Vergo Retail, announced they are commencing closing
down sales in the remaining 18 stores. However, they are continuing negotiations
with potential purchasers.

“Discussions are ongoing with a number of different parties wishing to
acquire part or all of the business. This process is being run in parallel with
a discount sale in order to generate sufficient cash to fund the business in the
short term,” said Sarah Bell, partner at MCR and one of the joint
administrators.

“Unless a purchaser can be found for the whole business, further store
closures during the coming weeks cannot be ruled out,” she added.

Bell and Steven Muncaster were appointed administrators to the department
store business on 7 May 2010.

So far approximately 340 people have been made redundant at the clothing
retailer which had around 942 employees.

Vergo, based in Liverpool, was established in 2007 and operates approximately
19 department stores including Lewis’s in Liverpool, Robbs in Hexam and Derrys
in Plymouth.

Further reading:

MCR
administrators make 335 redundancies at Vergo Retail

MCR
appointed administrators to Vergo Retail

MCR
administrators close Ethel Austin

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