UK: 3,000 jobs saved in childrenswear chain deal

More than 3,000 retail jobs were saved today after the childrenswear chain Adams was bought out of administration.

The deal involving retail entrepreneur John Shannon – formerly chairman of footwear firm Stead & Simpson and clothing chain Country Casuals – ensures that 273 stores around the UK will remain open.

PricewaterhouseCoopers (PwC), which was appointed as administrator yesterday, said it had not been possible to save 42 branches, affecting around 400 jobs.

PwC partner Rob Hunt said: “If we had not been able to complete this transaction it is highly likely that significantly more store closures and redundancies would have occurred.”

Operating from Nuneaton, Adams is the largest specialist retailer of children’s clothing in the UK with an annual turnover of £200m (€303.3m). It also has a number of overseas franchise outlets and retail customers, which PwC said would continue to be served following today’s deal.

Adams holding company, Myriad Childrenswear and its clothing subsidiary TU Childrenswear are not impacted by the deal and continue to operate as normal under the control of their directors.

PwC said the deal with Mr Shannon was completed immediately following its appointment as administrators to the company.

Mr Hunt added: “This sale will enable 273 stores to continue trading, safeguard some 3,200 jobs and ensure that Adams continues to have a place on the high street.”

One media report said Mr Shannon paid less than £20m (€30.3m) for the shops.

It is the second retail rescue in as many days after Kwik Save said yesterday an investment company had agreed to take a majority stake in the business. A new chief executive and chairman will be appointed to steer the group.

The group said the investment was set to be completed by February 16, adding it would now move to implement its strategy to turn around the business and secure its future.

Kwik Save did not release any other details and said it would not be releasing any further information on the financial position of the company.