Childrenswear retailer Adams applies for administration

Struggling UK childrenswear retailer Adams joins the list of other retailers in trouble after it has emerged that it is set to go into administration.

It was revealed on Christmas Eve that music and games retailer, Zavvi, had entered administration after it was hit by the collapse of Woolworths, which forced it to cease taking new orders via its website. Woolworths’ unit Entertainment UK (EUK), was Zavvi’s main supplier.

Furthermore, Woolworths and MFI have more or less closed their doors, while tea and coffee chain, Whittard of Chelsea, entered administration but has since been sold to EPIC private equity partners.

Adams, which has been trading for 75 years, has about 260 outlets, including Adams Kids, and has a workforce of 2,000. The company was originally founded in Birmingham and makes clothes for Boots, the health and beauty retailer.

PriceWaterhouseCoopers are likely to be appointed administrators and will take over the running of Adams until a buyer is found.

This Christmas has been one of the worst for retailers, despite major discounting which has been done in an attempt to lure shoppers back into the stores.

The British Retail Consortium (BRC) said it had been ‘a poor Christmas’ for several retailers.

Earlier this month, insolvency expert Begbies Traynor warned that more retail chains will go bust before the middle of January.

Begbies said it would not be surprised if between 10 and 15 well-known chains did not make it beyond mid-January.

Story link: Childrenswear retailer Adams applies for administration