Bay Trading salvaged by sale to Rinku Group
FASHION chain Bay Trading has been rescued by a last-ditch sale to clothing wholesaler and retailer Rinku Group, administrator Deloitte said yesterday.
Rinku, which owns the Tigi-Wear, Viz-a-Viz and iZ clothing brands, has bought 45 of Bay Trading’s stores and 85 concessions. The chain’s remaining 125 outlets will be wound up and returned to landlords after running down their stock.
As part of the deal, 566 jobs will be saved, though Bay’s remaining 1,230 employees will be made redundant.
Deloitte administrators Lee Manning and Matt Smith did not disclose the cost of the deal.
Epcoscan Limited, which trades as Bay Trading, was put into administration by former owner Alexon Group in April, after credit insurers withdrew cover for its suppliers.
Just two days earlier, the group revealed the Bay brand had made a £7.2m loss before exceptionals for the full year, but was upbeat about the chain’s prospects, saying it had designed a new “revitalised image” for the label.
Deloitte said at the time it would continue to trade the business with a view to selling it as a going concern.