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UK retailer Adams goes into a form of bankruptcy

UK retailer Adams goes into a form of bankruptcy

British children's clothing retailer Adams Childrenswear Ltd. went into a form of bankruptcy on Wednesday, making it the latest well-known British retailer to fall victim to the economic downturn.
The 75-year-old central England-based retailer went into administration after being hit by slumping consumer demand, said PricewaterhouseCoopers, the company's administrator.
Rob Hunt, a partner at PricewaterhouseCoopers, said that stores would remain open as the administrator looked for a buyer for the company and reviewed its financial position.
"We remain hopeful that it will prove attractive to a purchaser," said Hunt. "However, the current difficulties in the retail environment are such that some store closures are likely."
He said that PricewaterhouseCoopers planned to say more about the company's future early next week.
Adams employs 3,200 people and has 271 stores in Britain operating under the name Adams Kids, and over 100 international outlets in the Middle East and Europe. The company is owned by Northern Ireland businessman John Shannon, who bought it out of administration less than two years ago.
Adams is associated with another company, Mini Mode Childrenswear Ltd., which supplies clothes to Boots under the Mini Mode brand name. That company is not in administration, PricewaterhouseCoopers said.
Adams joins a series of big British retail brands to be hit by the economic turmoil _ clothing retailer USC, 99-year-old general store Woolworths and tea and coffee merchant Whittard of Chelsea have already been forced to file for administration.
About 200 Woolworths stores closed Saturday and the remainder are expected to close over the next week unless a buyer is found. Whittard has been sold.
The news that Adams has gone into administration comes after insolvency specialist Begbies Traynor predicted last week that as many as 15 "major" British household-name retailers could fail by the middle of January.
In total, 356 British retail companies collapsed during the third quarter of 2008 _ 39 percent more than the same period last year _ according to The Insolvency Service.


Updated : 2020-12-02 09:05 GMT+08:00