Fashion chain Jane Norman goes into administration

WOMEN’S FASHION chain Jane Norman has gone into administration in the UK, putting more than 1,600 jobs at risk.

The struggling British company shut down its stores over the weekend after it failed to find a buyer for the business.

Jane Norman, which specialises in the 16-25-year-old market, has seven stores in Ireland, as well as a presence in six Debenhams outlets and three concessions in Tempest stores.

Accountancy firm Zolfo Cooper confirmed yesterday evening that it had been appointed as joint administrators to the retail chain, which has about 90 UK stores and 82 concessions. “Following a period of testing trading conditions, the company has experienced severe cash flow difficulties, which resulted in the board requesting the appointment of the administrators,” Zolfo Cooper said.Debenhams and Edinburgh Woollen Mill have been cited as possible buyers for the chain, founded in 1952, which has debts of £140 million.

UK press reports suggest Zolfo Cooper may place Jane Norman in what’s known as a “pre-pack administration”, under which a buyer for the company or its assets has already been lined up, so that the sale can be carried out shortly after the firm has entered formal administration. The practice has been criticised for leaving creditors unpaid.