Update: East to stop trading in May, 300 jobs lost

London - High street fashion retailer East is set to cease trading next week after administrators failed to secure a buyer in time. Nearly 300 employees will be made redundant once the company East Lifestyle Limited closes down on May 4.

The closure follows on from East's administration in January, which led to 27 redundancies at the time. East previously appointed Phil Armstrong and Geoff Rowley, partners at FRP Advisory LLP as administrators. However, they were unable to find a suitable buyer for the business within in three-month time-period, in spite of receiving at least three offers.

East to cease trading next month, as administrators fail to secure buyer

However, FPR Advisory is still adamant that a last-minute sale could still potentially take place. A spokesperson for FRP Advisory said: "After exploring opportunities to agree a sale of all or parts of the business, we have been unable to secure a buyer to date. Currently East Lifestyle Limited is due to cease trading on 4 May, with all employees being made redundant, and 12 leases being transferred to other parties. Discussions are still ongoing and we continue to explore avenues for a sale to secure the best possible outcome for all parties."

East currently operates 34 stores and 15 concessions across the UK. One lease on a store in Reigate was previously sold in March for 75,000 pounds. Another 12 stores are set to close, as their leases will be taken over by other parties. In addition, East's website claims to be currently down for maintenance.

The timeframe of East's closure lines up with the approximate timing highlighted in the administrators' proposals which have been filed with Companies House. The fashion retailer could initially continue trading following the appointment of administrators, in the hopes it could maximise value from the stock and maintain the brand's reputation in the case of a sale. But East's unsecured creditors are owed 10.1 million pounds, of which 6.2 million pounds are owed in loans to its shareholders, according to a creditor's report filed with Companies House.

The move comes three years after East shut 19 stores and entered a pre-pack administration. At the time East Lifestyle Limited acquired parts of the business through the pre-pack deal worth 3.4 million pounds.

Photo: East SS18, website