Blue Inc is up for sale again, buyer needed urgently
Low-price menswear retailer Blue Inc is for sale in the latest sign of the UK fashion retail sector struggling against the twin onslaughts of internet shopping and consumer caution.
The loss-making company has reportedly appointed professional services firm Begbies Traynor to find a buyer.
It comes after a number of bruising years for the company in which it has been through several restructuring processes and has closed a number of unprofitable locations.
And it seems that the need to find a buyer is quite urgent with Sky News reporting that it's looking for new owners to take control of the business "in the short term”.
Its fate if a buyer can't be found remains uncertain, although there's always a chance that even if it went under, it could still be bought out of administration and could continue to operate. Some potential buyers prefer to take that route given that it makes it easier for them to shed unprofitable stores and restructure the business from the ground up.
However, there are also concerns that the company will be unappealing given the multiple and unsuccessful attempts that have been made to turn it around in recent years.
The sale process is more bad news for the fashion sector and suggests that even if it is snapped up, jobs will be lost as some of its locations are likely to be axed. This will also pile further pain on the beleaguered property sector that is having to deal with a spate of retailer failures and restructurings at the moment, with store vacancy rates on the rise.
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