105 jobs on the line as fashion firm collapses

A SCOTTISH fashion chain went into administration yesterday, putting 105 jobs at risk.

Ness Clothing, which has ten stores in Scotland, five in England and four concessions, will keep trading as joint administrators try to sell the company.

The firm, which has its headquarters in Edinburgh, is an independent women’s fashion and accessories label.

All 105 employees across the company’s head office and chain of outlets have been retained for the time being.

Business restructuring partners James Stephen and Matthew Tait of BDO LLP have been appointed joint administrators.

Mr Stephen said: ‘Notwithstanding the improving sales trend, with like-for-like sales up 12 per cent over the last 12 months, the company experienced working capital difficulties.

‘Nevertheless, Ness is a unique brand and a highly popular shopping destination for its loyal customer base, in towns across Scotland and England. We are confident of securing a sale of the company as a going concern.

‘We have already received expressions of interest and we encourage other interested parties to come forward.

‘The company will continue to trade while a sale is explored and all stores will remain open.’

The first Ness store opened on Edinburgh’s Royal Mile in 1997. Outlets later opened in Glasgow, Aberdeen, Dundee, Perth, Inverness and Livingston. There are English branches in Bath, Cambridge, Ilkley, York and Keswick.

Meanwhile, nearly 150 staff at clothing chain American Apparel have been made redundant after administrators closed its 12 UK stores, including one in Glasgow. Eight jobs are going in Scotland.

The California-based company went into administration in November amid tough trading conditions here and in America.

Jim Tucker, joint administrator and restructuring partner at KPMG, said: ‘We have carried out our intention to trade all of the stores on a short-term basis to sell the stock and realise value for the creditors.’