- Angela Gonzalez-Rodriguez |
The British menswear chain has fallen into administration for the second time in two years after failing to find a buyer.
There were reportedly two parties interested in acquiring some of the chain’s branches and one potential buyer who could acquire its brand, according to sources quoted by the ‘Sunday Times’.
Blue Inc. received over 2 million pounds in funding but wasn’t enough
The paper reminded that the fashion company received equity injections from shareholders of 1.6 million pounds from Uniserve Holdings and 1 million pounds from Padma Textiles, but this was not enough to stave off administration.
Blue Inc. appointed turnaround specialist Begbies Traynor to find a buyer last month. This was seen by many in the industry as the last option for the company which once tipped for a 60 million pounds float.
The group had struck a company voluntary arrangement (CVA) with its creditors that saved it 9 million pounds last year; regardless, it made a loss of 2.6 million pounds in 2017.
Begbies Traynor said in a corporate release: "We can confirm that Blue Inc entered administration on Monday 10 December 2018. The remaining 31 stores will continue trading while discussions are in progress regarding the future of the brand. We cannot make any further comment at this time."
Photo:Blue Inc website