Hundreds of jobs are likely to be lost at women’s fashion retailer A-Wear in the wake of a receiver being appointed to its holding company after the search for fresh investment proved fruitless.
Ken Fennell of Kavanagh Fennell was yesterday appointed receiver to the business; with the move coming less than two months after Latzur Ltd, which trades as A-Wear, entered examinership.
In a statement released yesterday, the company said the initial examinership process was aimed at restructuring the business “so as to put the business on a sustainable footing and to protect as many jobs as possible”.
The fashion chain operates 31 shops across Ireland and nine concession stores in the UK. It employs 358 people across its shops and head office on Dublin’s Grafton St. There are 117 full-time staff and 241 part-time staff employed between the stores and the head office.
While A-Wear will continue trading under receivership, Mr Fennell last night began the task of assessing which stores remain feasible. His ultimate goal now is to sell the overall business as a going concern, but yesterday’s initial statement said: “It is inevitable that some stores will cease to trade.”
In communicating the failed examinership attempt, A-Wear’s owners added yesterday that, “in the intervening weeks post-examinership, sales projections for the business have not materialised and no viable investment proposal was forthcoming, leaving the business with no option but to seek the appointment of a receiver”.
A-Wear was also bought out of receivership last year, with the then new owners managing to halve the fashion firm’s losses to €2.5m, but still finding the commercial rental market and rising competition an ongoing struggle.
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