Blue Inc ‘close to administration’
Blue Inc is reportedly looking for a buyer to help the men’s fashion chain avoid falling into administration.
The chain has appointed insolvency practitioners Begbies Traynor to sell the business and according to Sky News, sources said the retailer needed an immediate injection of capital in order for it to survive.
Blue Inc has struggled to keep afloat in recent years; in 2016 it entered a pre-pack administration and in 2017 the company approved a company voluntary agreement (CVA) to help restructure the business and lower rents.
Begbies Traynor told Retail Sector: “We can confirm Begbies Traynor has been appointed by the directors of Blue Inc to advise on the company’s financial position. While these discussions are in progress, the business continues to trade as usual. We cannot make any further comment at this time.”
In the 18 months to July 2017, the company recorded losses of £15.6m and it closed 34 unprofitable stores, bringing its portfolio to 93. Blue Inc’s possible fate reflects the current state of the high street, which in 2018 has seen the loss and struggles of Toys R’ Us, Maplin, New Look and House of Fraser.
