Retail chain A-Wear goes into receivership

Fashion retail chain A|Wear has gone into receivership, with at least some of its 31 Irish outlets and nine UK concessions set to close.

Ken Fennell of Kavanagh Fennell was this morning appointed as receiver to the chain, which had been in examinership since early last month.

In a statement, Kavanagh Fennell indicated the receiver will assess the trading feasibility of “some of the stores” over coming days but added it is “inevitable” that some will close their doors.

The receiver will try to sell the business as a going concern.

The move into receivership marks the latest twist in a troubled recent history at A-Wear, which has struggled with high rents and supply issues, as well as recessionary trading conditions.

The receiver was appointed by an unnamed “secured charge holder”.

A|Wear was sold last month to Canadian businessman Jack Stein, who took over the business from the Lebanese-Canadian Jesta group.

Jesta had operated the chain since late 2011, having purchased it from turnaround specialist Hilco, which had in turn bought the company out of an earlier receivership.

A|Wear employs 358 staff, of whom 117 are full-time employees. At the time of the business entering examinership last month, it had been proposed that it would build up its wholesale arm across Europe by sourcing clothing at lower prices from new locations.