Morgan closes with 600 facing redundancy

Administrators from KPMG Restructuring have been called in at the UK division of high street fashion brand Morgan which has been forced to close 19 stand-alone stores and 47 department store concessions. KPMG's David Crawshaw and Myles Halley were today appointed administrators at Morgan UK after the withdrawal by Morgan SA, of its distribution agreement in the UK.

Crawshaw said: 'Morgan has suffered from difficult trading conditions on the high street. Trading for the first six months of the financial year to June has been poor with like-for-like sales down 19.1% to £11.8 million.' He said that because of this and subsequent losses, the company faced an increased funding requirement to pay wages, landlords and creditors. Crashaw said KPMG was forced to wind down the business with approximately 600 staff made redundant.