Fashion group Basebuy goes into administration
Eisenegger and Foxhole chains seek buyers
Discount clothing group Basebuy has become the latest victim of the downturn in the UK retail sector, appointing accountants BDO Stoy Hayward as administrators.
The group employed more than 600 people across its 70 stores, which trade as Eisenegger and Foxhole. The administrators of Blackpool-based Basebuy closed 38 of the stores immediately, with 315 job losses, but are hopeful that a buyer can be found for the remainder.
Joint administrator Dermot Power said: “This is a well managed business which has been trading profitably for a number of years. 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.”
He added: “This is another example of how a high fixed cost business cannot adapt quickly enough to rapidly intensifying competition on the high street.”
Basebuy had paid high premium for rents in order to fuel its expansion, paying the price when sales fell off. The administrators took the decision to close the 38 stores within hours of being appointed, following a review of trading.
Power said: “”It is our hope that the remaining 32 stores can continue to trade profitably and we are confident that a sale can be achieved that
will result in the protection of the 300 plus remaining jobs. We can confirm that we have been approached by a number of interested parties that may lead to a sale of the remaining business and assets.”
