Fashion retailer USC placed into administration

The economic downturn has claimed yet another victim today after Scottish-based fashion clothing retailer USC has been placed into administration.

Just this morning, it emerged that UK childrenswear retailer, Adams, had applied for administration, while on Christmas Eve the music and games retailer, Zavvi, entered administration.

The collapse of USC, which is backed by Sir Tom Hunter, puts 300 jobs at risk at 15 of its 58 stores. However, Sir Tom has struck a deal to save around 40 stores, saving over 1,000 jobs.

Dundonald Holdings, a subsidiary of West Coast Capital (WCC), a private equity firm run by Sir Tom, agreed the purchase with the administrator, Bryan Jackson at PKF.

USC, which stock designer fashion brands including Diesel, Henri Lloyd and Lacoste, was founded in 1989 as a single shop by Angus Morrison and David Douglas in Edinburgh. WCC purchased it for £45 million in 2004.

Mr Jackson at PKF said the credit crunch continues to spread into the wider economy beyond the property and financial sectors.

According to Jim McMahon of WCC, the deal was the only way of assuring the business survived and will offer sustainable employment prospects for the remaining staff going forward.

Earlier this month, insolvency expert Begbies Traynor said that it would not be surprised if between 10 and 15 well-known chains did not make it beyond mid-January.

Story link: Fashion retailer USC placed into administration