Online retailer The Hut Group has acquired premium fashion retailer Coggles out of administration. The York-based upscale fashion chain went into administration in May after various failed attempts to restructure. "Our primary duty is to bring aboutthe optimum return for creditors and the offer from the Hut Group was an extremely good deal,” said Andy Clay of Begbies Traynor. Joint administrators have completed a deal for The Hut to take some of Coggles’ assets, including stock and all intellectual property such as the brand and the company’s domain names.
Following the deal, The Hut Group will take the ailing retailer online, as part of its prestige division.
“Whilst it is sad to see Coggles disappearing from the high street for the time being, and the loss of employment for the remaining staff, it is positive that the business will continue as part of a large and successful specialist online retail group,” summarised joint administrator Clay after the news broke on Tuesday.
Earlier this month, administrators revealed that due diligence being carried out by a mystery saviour, reported 'The Press'.
The Hut rescues Coggles from administration
“Unfortunately, most of the interest we received was from potential purchasers wanting to acquire the online side of Coggles’ business which represented the bulk of turnover, rather than for its retail outlets. This means that the stores in York have closed and the remaining staff have been made redundant,” said joint administrators, confirming the redundancy of 60 staff.
Founded in 1974 as 'Sarah Coggles', the business had built on the success of its outlets on Low Petergate in York by developing an online retail business supplying more than 200 men's and women's designer collections from established fashion houses, emerging designers and international labels.
Joint administrators Andy Clay and David Acland of Begbies Traynor were appointed to Coggles on 7 May 2013 following failed attempts by the directors at Coggles to restructure and to attract new investment.