Joy, a fashion retailer, has been rescued by its owner Louche London in a pre-pack deal, despite falling into administration for the seconds time in the last ten years.
The pre-packaged sales result in the company to reduce the number of their stores throughout the UK from 32 to 20. The majority of the remaining stores are located in London. Furthermore, 78 jobs have been lost during the process, while 230 jobs have been saved.
Several other fashion retailers have faced going into administration in the past few weeks including Jaeger and Twenty One.
Some of the major reasons for the struggles that UK retailers are currently facing include large increase in non-domestic rates tax & rent and the decline of high street as a result of online shops becoming increasingly popular.
Commenting on Joy’s pre-pack deal, Paul Ellison, partner at administrators KRE Corporate Recovery, said:
“With the majority of the retail stores remaining open and with many jobs saved this is an excellent demonstration of why pre-packaged sales from administration will continue to have a place in rescuing businesses.”