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Burnley clothing store goes into administration

Internacionale which has gone into administration.

Internacionale which has gone into administration.

A high street clothing chain which has a shop in Burnley has gone into administration.

Bruce Cartwright, Lyn Vardy and Toby Underwood of PwC have been appointed as joint administrators of Internacionale UK Limited.

Internacionale, which employs nine staff at its store in Manchester Road, has 89 retail outlets across the UK and approximately 1,000 staff nationwide.

It was formed from the administration of a predecessor business in July 2013.

But the company has not enjoyed the expected growth and recovery.

Due to continued poor trading and increasing creditor pressure, particularly from rating authorities and landlords, the shareholders have decided they can no longer support the business and have taken the difficult decision to wind down the business through administration.

Bruce Cartwright, joint administrator and partner at PwC, said: “The company directors have worked with key stakeholders to try and find a solution to preserve the business. “However, these efforts have proved to be unsuccessful against the backdrop of a fiercely competitive retail sector which, despite the improving economic conditions, can be unforgiving to businesses in financial distress.

“We are currently working with management to agree an orderly wind-down of the company, but we welcome any approaches to purchase parts of the store portfolio and safeguard jobs. We intend to continue to trade over the coming weeks in order to sell as much of the retail stock as possible and maximise the return to creditors. Staff have been –and will continue to be- paid for their work.

“Unfortunately, unless a willing purchaser for the business or store portfolio is forthcoming, it is inevitable that redundancies and store closures will become necessary as the administration process continues. The company and the administrators are making every effort to help staff through this difficult transition.”

 

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