Coast Stores, the occasional wear retailer and high street stallworth has gone into administration in the UK.
Coast’s sister brand Karen Millen had partially rescued the company, buying its department store concessions arm, website, safe guarding up to 600 jobs. However, as part of a pre pack administration deal, it will not be maintaining Coasts overseas stores or its UK high-street stores.
Following the recent struggles of marquee high street retailer House of Fraser and notable designer Orla Kiely, this has become an all too familiar story on the high-street. Coast sighted changes in the retail market, most notably the rise of online shopping, and also the weakening in the market for occasional wear as reasons for entering into administration.
Why is this relevant to Irish retailers?
The changes to the high-street landscape, in terms of footfall and spending can also be observed in Ireland. The trend is towards online shopping, and a reduction in ‘days out in town’, the net result of which will be that retailers may have to reconsider the cost of retaining prime retail units and the staff required to man them. It is therefore crucial that retailers realise the benefits of engaging with any potential difficulties a retail business may face as early as possible.
Doing so may mean that the distressed company has a reasonable prospect of survival, indeed this is one of the key requirements for entering into such an examinership arrangement. With sound advice and guidance, a distressed company may be able to emerge from examinership in a better position than it was in previously.
If your business is facing challenging times, examinership does not have to mean the end of the road. Contact McDowell Purcell’s insolvency team for advice and guidance, and perhaps the coast will become clear for your business.
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