Interviews
Officers Club slips into administration
04 Apr '11
2 min read
Clothing chain, The Officers Club once again slipped into administration on March 29, after a series of challenging trading conditions and soaring input costs.
The firm, which operates 102 outlets with 900 employees, was said to have been finding it difficult to pay its three-monthly rent bill, due this week. The company has been put under administration of the company appointed administrator, Grant Thornton.
Immediately on appointment of the accountancy firm as administrator, 46 Officers Club outlets were sold out to a fast-growing fashion chain, Blue Inc, while rest of the 56 company outlets have been shut down along with its warehouse in Newcastle.
Joe McLean, one of the administrators, said that, the company was faced with difficult trade conditions, particularly in 2010, coupled with soaring prices of raw materials. Also, in view of the extremely price-sensitive nature of the retail market in the UK, it was not feasible to transfer the burden of high prices to the customers.
The directors of the company were not anticipating any positive developments to come up in the early part of the current year, and thus being wary of their legal obligations, wrapped up their efforts to save the firm, considering the administration was the best solution to the issue, and even in the interest of the stakeholders and creditors of the company.
Prior to this, the company, a few days before the Christmas of 2008, was placed under administration.
The firm, which operates 102 outlets with 900 employees, was said to have been finding it difficult to pay its three-monthly rent bill, due this week. The company has been put under administration of the company appointed administrator, Grant Thornton.
Immediately on appointment of the accountancy firm as administrator, 46 Officers Club outlets were sold out to a fast-growing fashion chain, Blue Inc, while rest of the 56 company outlets have been shut down along with its warehouse in Newcastle.
Joe McLean, one of the administrators, said that, the company was faced with difficult trade conditions, particularly in 2010, coupled with soaring prices of raw materials. Also, in view of the extremely price-sensitive nature of the retail market in the UK, it was not feasible to transfer the burden of high prices to the customers.
The directors of the company were not anticipating any positive developments to come up in the early part of the current year, and thus being wary of their legal obligations, wrapped up their efforts to save the firm, considering the administration was the best solution to the issue, and even in the interest of the stakeholders and creditors of the company.
Prior to this, the company, a few days before the Christmas of 2008, was placed under administration.
Fibre2fashion News Desk - India
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