East rescued from administration by East Lifestyle

Womenswear retailer East, has been saved in pre-pack administration deal. The clothing retailer has been bought by East Lifestyle Limited via a pre-pack administration deal, saving 550 jobs across 82 stores.

On the downside, the chain will shut down 19 stores across the UK and consequently axing 155 jobs.

Geoffrey Bouchier and Philp Duffy of Duff & Phelps were appointed joint administrators to the business and achieved the sale upon appointment.

In an official communication issued on Thursday, Bouchier commented, “East Limited had suffered losses in the past few years due to the continuing difficult economic climate and also the shift in consumer spending to different channels away from the traditional high street stores.”

“The restructuring process has resulted in the continuation of viable stores and the safeguarding of the majority of the employees and ensures that the business is financially secure for future trading,” the company added.

‘Company Rescue’ highlights that pre-pack administration allows a company to be bought by a third party or new company quickly to ensure the business can continue running smoothly and employee contracts can be transferred over.