300 jobs at risk as fashion chain Coast collapses

FASHION chain Coast has collapsed as the crisis gripping Britain’s High Street intensified – putting 300 jobs at risk. Staff were told last night that all 24 stores are to close.

But rival Karen Millen has bought the group’s brand, stock and website, saving 600 staff.

Accountant PwC has been appointed as an administrator to shut the rest of the company down. Signs in the windows of Coast shops said concessions in department stores will stay open, returns can still be handled and unprocessed click-and-collect orders made online will be refunded.

The notices added that any gift cards will be honoured, meaning customers should not lose out. They blamed difficult trading conditions for the failure.

Beth Butterwick, chief executive of Karen Millen, said: ‘ We are excited to be welcoming over 600 Coast employees. Our expertise and infrastructure puts us in a unique position to create a lean and profitable business, ensuring it remains a thriving destination in department stores and online.’

Coast is owned by Aurora Fashions, which also owns retailers Oasis and Warehouse. Aurora is owned by Icelandic bank Kaupthing, which in turn owns Karen Millen. It comes at a brutal time for retailers, as consumers ditch stores for online shopping with foreign tech titans such as Amazon.

Maplin, Toys R Us and House of Fraser have collapsed this year, and at least 50,000 jobs have been lost in the industry.

New Look, Homebase and even stalwart Marks & Spencer have announced plans to shut shops.

The Mail is campaigning to reform sky-high business rates, to create a level playing field for traditional shops and newer online rivals.

A typical department store spends £717,952 a year on the tax.

And smaller independent shops must find an average £9,623 a year, according to research by consultant Altus Group.

This week Nickie Aiken, Conservative leader of Westminster City Council, became the latest in a string of politicians and business leaders to back our campaign.

She said: ‘Our taxes should reflect our way of life. I would ask the Treasury: do we want to continue the decline so the only things left on the High Street are charity shops and betting shops?’

Chancellor Philip Hammond has ruled out a major overhaul of business rates in the near future. However, there are growing signs a U-turn is under way.

Treasury minister Robert Jenrick last week said that the issue is under consideration and there could be an announcement in this month’s Budget.