Internaçionale rescued by pre-pack deal

More than 1,500 jobs have been safeguarded at collapsed value fashion retailer Internaçionale after it was sold as part of a pre-pack deal by the administrators. The chain, which has 132 stores across England, Wales, Scotland, Northern

Ireland and Isle of Man, fell into administration last week with Thomas Andrew Jack and Samuel James Woodward of Ernst & Young appointed as joint administrators.

The business was then sold off immediately as a going concern to a new company set up by its former directors, which includes the former Chief Executive Raj Sehgal, managing director Naresh Abrol and finance director William Milton. All three are expected to run the new company in the same positions.

1,550 jobs saved in Internaçionale pre-pack deal

The pre-packed deal to the new company, Internaçionale UK, which is also backed by the existing shareholders, has saved 114 of the company’s stores, all of the 1,500 jobs, as well as the retailer’s head office and finance operation.

However, the remaining stores that are not included in the sale will close with immediate effect.

Joint administrator Tom jack said: "High street retailers have faced unprecedented conditions over recent years, and the market for fashion clothing has become increasingly competitive.

"The business has been significantly loss-making over recent years and although the directors have sought to restructure and reposition Internaçionale, with significant cash investment from shareholders, it has not proved possible largely because of the high fixed costs of the business.

"This has resulted in the retailer being unable to continue to operate outside of administration."