There is another casualty on the high street. The reputed women fashion retailer Jane Norman has closed all their 90 stores in the UK and gone into administration. The company tried to find a buyer for the business, but failed to do so.
Administrators to the company have been appointed from the US accountancy group Zolfo Cooper. Rumors have been that Debenhams and Edinburgh Woolen decided to take over the ailing Jane Norman. The retail chain used to employ 1600 people and the clothing for the firm was mainly aimed for the kids who are 16 to 25 years old female.
The debt of Jane Norman stands at £140 million and the sales also went down during the past two years. The company was founded in 1952 and has 90 outlets in UK. It’s clothing ranges were described as “”sexy and affordable adaptations of catwalk trends”.
The trend ahs shown that customer spending has gone down to a great extent over the past few years. In the last week, three major UK habitat stores were sent into administration. They are Moben, Kitchen Direct and Dolphin. High price of raw materials is also one of the reasons for this trend.
The administrators will take the initiative to make a formal sale of the company first. But the move has come into criticism as the creditors may remain unpaid at the end of the day.