Internacionale enters administration

Internacionale in administration

Fashion retailer Internacionale has entered administration with the company requiring a buyer in order to avoid liquidation.

The company entered administration on Friday 28 February after a period of poor trading and lack of economic growth.

The high street retailer of women’s clothing currently has 89 stores across the UK with one of those stores located in the Wheatsheaf Shopping Centre in Rochdale town centre.

Signs placed in the windows of the Rochdale based store confirm the administration.

Earlier this year, owners of Internacionale engaged advisers to produce a turnaround and contingency plan intended to secure support for the business until late March. As part of this turnaround, 90 redundancies were made. But due to continued poor trading and increasing pressure from the creditors, it was decided by shareholders that the business would wind down through administration.

Bruce Cartwright, Lyn Vardy and Toby Underwood of PwC were appointed as joint administrators of Internacionale.

Bruce Cartwright, joint administrator and partner at PwC said: “The company directors have worked with key stakeholders to try and find a solution to preserve the business. However, these efforts have proved to be unsuccessful against the backdrop of a fiercely competitive retail sector which, despite the improving economic conditions, can be unforgiving to businesses in financial distress.

“We are currently working with management to agree an orderly wind-down of the company, but we welcome any approaches to purchase parts of the store portfolio and safeguard jobs. We intend to continue to trade over the coming weeks in order to sell as much of the retail stock as possible and maximise the return to creditors. Staff have been, and will continue to be, paid for their work.

“Unfortunately, unless a willing purchaser for the business or store portfolio is forthcoming, it is inevitable that redundancies and store closures will become necessary as the administration process continues. The company and the administrators are making every effort to help staff through this difficult transition.”