Kookai in Britain goes into administration |
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Wed, 04 Jan 2006 14:10
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LONDON: The British operations of fashion chain Kookai have been turned over to an administrator as the U.K. franchise holder for the brand, debt-ridden Forminster Plc., could not renegotiate the contract terms with the Paris-based parent firm of the chain, Groupe Vivarte.
Accounting firm Deloitte has been appointed as administrator and it is seeking a buyer. The operations will continue from the 55 outlets of the chain as before, Deloitte said in a statement. "The administrators are carrying out a rapid review of the business, and in the meantime the business continues to trade whilst a buyer for some or all of the business as a going concern is found," it added.
The firm has about 600 people on its rolls.
Forminster shares have stopped trading on the AIM exchange as the company had requested for a suspension in trading on 22 December.
In December, two other firms, DVD seller MVC and wine retailer Unwins had gone into administration.
Deloitte's partner Neville Kahn, who has been named one of the administrators, said various parties are already interested and, "We're looking for a rapid sale and want to have the process concluded within weeks."
He said for some time there has been uncertainty over the franchise arrangements with the Paris-based parent, but the administration enables more stability to be brought into the business.
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