KPMG Sells Alexon in Pre-Pack Deal
MORE THAN 2,700 JOBS should be saved after KPMG administrators sold womenswear clothing retailer Alexon in a pre-pack.
The Luton-based retailer, which began trading in 1929 and operates through 990 outlets, was facing cashflow problems through its next quarterly rent bill and Christmas stock. It was also in debt to its lender Barclays.
Unable to sell the business on while trading as a going concern, it entered into administration and was immediately sold to Sun European Partners.
The deal drew a "line in the sand" for Alexon, said Will Wright, joint administrator of Alexon and restructuring director at KPMG.
"We received a great deal of interest from buyers keen to turn the business' fortunes around. We are pleased that the level of buyer interest was enough to avoid a full operational administration via a ‘pre-pack', securing around 2,700 jobs and protecting precious value," said Wright.
Jane McNally, chief executive officer of Alexon, said: "The capital investment the Sun European Partners affiliate will be making in Alexon as part of this transaction will enable us to invest further in our turnaround strategy which is focused on restructuring our store portfolio, the roll out of new retail environments and further acceleration of our e-commerce business."
"The turnaround programme pursued by the business to date has improved performance and returned the business to profitability," said Paul Daccus, principal of Sun European Partners.