Bay Trading enters administration putting 1,000 jobs at risk

| April 25, 2009 | 0 Comments

Alexon has announced that its fashion chain Bay Trading has entered into administration which will put 268 branches and over 1,000 jobs at risk.

Alexon, the parent company, was keen to point out that its other brands Ann Harvey and Kaliko would not be affected by Bay Trading’s administration.

Following the release of trading results this week, the credit insurance offer was withdrawn and administration followed with Deloitte expected to be announced as administrators.

The chain is expected to continue trading until a buyer is found, although the future does remain uncertain given the current retail trading conditions.

After the announcement that Bay Trading was being cut loose from the group, Alexon’s shares rose by 60 percent to 52p.

Within this week’s Budget, Chancellor Alistair Darling has actually made a provision to help protect businesses whose suppliers have their credit insurance facilities withdrawn, although this is not retrospective to help those who have had cover already withdrawn.

Prior to administration, Alexon said it had considered a restructuring but because it was a drain on the rest of the group’s finances, this was not possible. However, the group still has the backing of its lending bank and has net cash reserves of £5.3m.

Tags: , credit insurance, , , withdrawn

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