Galvin resigned last week as concern mounted that the 170-store chain would be broken up after being sold by Icelandic investor Baugur. A source said: “Hilco is not known for long-term investment and is most likely to break the business up.”
Verdict senior retail analyst Maureen Hinton said it could shed unprofitable stores. “They need to focus on stores in the right locations, slimming the whole business down,” she said.
She suggested that creating a new brand might also be necessary to keep what is left afloat. “They could build a brand with fewer stores because they have the infrastructure in place. It needs to be more contemporary and fashionable, not just low-priced,” she said. No comment was available from Hilco.
Value fashion retailers have struggled since the start of the year. Select and Ethel Austin fell into administration, and this week, the company that owned fashion retailer Internaçionale and homewares outfit Au Naturale also went into administration.
Prior to the administration, the company sold the Internaçionale brand and stores to an overseas investor. It also sold 31 Au Naturale stores to Opus Estates.
The deadline for offers for Ethel Austin was looming as Retail Week went to press.
Administrator Philip Duffy of Menzies Corporate Restructuring confirmed there had been several offers for parts of the business and he expected two or three for the entire business.
Former chief executive Elaine McPherson was mooted as the likely buyer after acquiring the retailer’s debt last month.
No comments yet