
Troubled retailer Austin Reed Group goes into administration
The move will affect the suit specialist and its womenswear brands Viyella and CC.
Retailer Austin Reed Group has gone into administration threatening jobs at stores across Scotland.
The move could affect the firm's premises in Glasgow, Edinburgh, Livingston and Gretna Green, some of which incorporate its associated womenswear brands, Viyella and CC.
The ladies clothing lines, which joined Austin Reed Group in 2009 and 1998 respectively, are also based at sites at Aberdeen, Inverness, Perth, Newton Mearns and St Andrews, with concessions at Jenners in Edinburgh.
The firm, which once counted Winston Churchill, Elizabeth Taylor and the royal family among its clients, closed 31 premises under a Company Voluntary Arrangement (CVA) last year.
On Tuesday, business advisery firm AlixPartners confirmed that three specialists had been appointed as joint administrators over Austin Reed Limited, Austin Reed Group Limited, ARG (Property) Limited, Country Casuals Limited, Country Casuals Holdings Limited and Darius Capital Limited.
AlixPartners said directors had made the move "as a result of cash flow difficulties arising from challenging retail market conditions".
The stores, which employ 1184 staff across the UK and Ireland, will continue to trade while "all possible options" are considered for the future of the business, including the sale or partial sale of the firm.
Its latest accounts, published in October last year, revealed that Austin Reed Group's pre-tax losses grew to £5.4m in 2014, compared with a £1.3m loss the previous year.
Sales at the retailer fell by £8.5m to £100m as a result of store closures.
It owed creditors £48m and had a net pension deficit of £11.2m.
The retailer, which was founded in 1900 and is headquartered in London, has 100 standalone stores and 50 concessions throughout the UK and Ireland.
Joint administrator Peter Saville said: "Our priority now is to work with all stakeholders and determine the optimum route forward for the business as we continue to serve customers throughout the UK and Ireland.
"Austin Reed is a well-regarded and iconic brand and therefore we are confident that it is an attractive proposition for a range of potential buyers, as such we expect, and welcome, contact from interested third parties."