D2 Jeans collapse 'threatens jobs'

The collapse into administration of fashion chain D2 Jeans, which has a store in Rochdale, has put nearly 800 jobs at risk, it has been reported.

D2 Jeans, originally set up by Scottish entrepreneur Sir Tom Hunter, became the first post-Christmas retail casualty when it was placed in the hands of administrators BDO.

According to The Times, BDO has received at least seven expressions of interest in the Ayrshire-based firm, which was bought by management in January 2008.

All 76 UK stores are to continue trading while a buyer for all or part of the business is sought.

But 22 people have been made redundant at the firm's headquarters in Dundonald, Ayrshire, and two of the three stores in Dublin, Ireland, have been closed with the loss of 39 jobs.

It is understood the retailer's problems stem from its rental agreements, which locked it into secondary high street locations.

D2 Jeans is believed to have posted a pre-tax loss of £2.9 million in the year to January 2008 - the most recent period for which figures are available - after a £1.9 million loss the previous year.

According to the report Sir Tom gave a confident appraisal of the retailer's prospects in 2001.

"Back in 1998, people were saying that Jeremy Clarkson had killed off the jeans market," he is reported as saying. "But it bounced back. Really, it will never go away."

Sir Tom, who has pledged to give at least £1 billion to charity during his lifetime, has seen several of his former investments face difficulties this year.