Kookai operator placed in administration

THE list of casualties on the British high street lengthened yesterday when the operator of the Kookai retail chain in Britain was placed into administration.

A total of 600 staff working at 25 Kookai stores and 30 concessions across Britain were facing an uncertain future after Deloitte was appointed as administrator of Adjustbetter, a subsidiary of London-listed firm Forminster.

The move comes a fortnight after shares in Forminster were suspended on the Alternative Investment Market because of concerns over the franchise.

Forminster said at the time that talks with French group Vivarte - the owner of the Kookai brand - had been inconclusive, and its trading position was “highly uncertain”.

In a statement, Deloitte said a rapid review of the business was underway and it was continuing to trade while a buyer for some or all of the stores was sought.

Neville Kahn of Deloitte said Kookai was a very strong retail brand and should attract enough interest to rescue the company from total collapse.

“For some time, there has been uncertainty over the franchise arrangements with Kookai SA and this administration enables more stability to be brought into the business,” he said.

“The operations will continue to trade and I am very confident that with the support of staff, customers and suppliers, we will be able to conclude a sale of some or all of the business as a going concern.”

Adjustbetter follows music and video store MVC and off-licence chain Unwins into administration as analysts speculate that poor Christmas trading could lead to further casualties.

Administrators were appointed to MVC on December 21 after sales were hit by competition from supermarkets, pirated CDs and DVDs, and internet downloads.

About 350 Unwins stores were closed last month, resulting in the loss of 1,800 jobs, after the chain fell victim to tough trading conditions and a shortage of supplies.

A deal with rival off-licence group Threshers involving the acquisition of 200 stores has since raised hopes that many staff will be rapidly re-employed.