Administrators are optimistic fashion business can be sold as going concern

SCOTS fashion and accessories firm Ness has called in administrators.

The Edinburgh-based company is continuing to trade while administrators seek a buyer and the firm’s 105 staff are all being retained at the moment.

The firm, set up in 1997 by Adrienne MacAulay, has 10 stores in Scotland and five in England, plus four concessions. She set up the company after she had difficulties finding a particular type of handbag in Edinburgh.

BDO LLP business restructuring partners James Stephen and Matthew Tait were appointed joint administrators yesterday.

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 remains a highly popular shopping destination for its loyal customer base and 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.”

In a further blow, eight jobs will go at the American Apparel store in Glasgow, after the US fashion chain’s administrators pulled down the shutters on 12 UK stores.

A total of 147 employees have been made redundant, with only the Camden High Street store remaining open.

The firm plunged into administration in November.

Jim Tucker, joint administrator and restructuring partner at KPMG, said: “Over the last seven weeks, we have carried out our intention to trade all of the stores on a short-term basis in order to sell the stock and realise value for the creditors.” IT is The Herald’s policy to correct errors as soon as we can and all corrections and clarifications will usually appear on this page.

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