This title is available as part of LexisLibraryFind out more or request a trial
"Fashion chain Bay Trading is going into administration, putting about 1,000 jobs in 268 branches at risk. Bay Trading's parent company Alexon stressed that its other brands such as Ann Harvey and Kaliko would be unaffected by the administration.
The decision was taken after credit insurance was withdrawn following the release of results on Wednesday. Credit insurance protects suppliers against the risk that they will not be paid for their products. The accountants Deloitte will be the administrators. They plan to keep the chain trading while they try to find a buyer.
Alexon operates two separate businesses: Epcoscan, which trades as Bay Trading, and Alexon Brands, which runs outlets such as Ann Harvey, Kaliko, Eastex and Alex & Co. Alexon said that Bay Trading had been loss-making and had relied on funding from the rest of the group to survive. On Wednesday, the whole group reported a full year pre-tax loss of £27.7m, compared with a profit of £12m the previous year.In the results, it said that the auditors were likely to refer to the uncertainty about the future of BayTrading in their report, which led credit insurers to withdraw cover."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...