Eisenegger stores sold to managers
Adminstrators sell slimmed-down clothing business
The management team of clothing retailer Eisenegger has bought 29 stores from the administrator, saving more than 300 jobs.
Discount clothing group Basebuy, which traded on the hight street as Eisenegger and Foxhole, appointed accountants BDO Stoy Hayward as administrators earlier this month.
The group employed more than 600 people across its 70 stores. The administrators closed 38 of the stores immediately, with 315 job losses.
The collapse of the business was blamed by adminstrator Dermot Power on “intense competition on the high street for a share of a diminishing retail spend together with some aggressive expansion into uneconomic rental units are two factors which are largely responsible for the need of a reconstruction.”
The administrators have now announced that the rest of the company had been sold to the existing management team with the support of its main suppliers. The business will continue to trade under both the Eisenegger and Foxhole high street brands. The price paid has not been revealed.
Power said an external trade sale would have been impossible due to issues surrounding the trademark and ownership of the brand.
