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Published
May 19, 2017
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Joy exits administration in pre-pack deal

Published
May 19, 2017

UK fashion chain Joy has gone into administration for the second time in a decade, and been bought in a pre-pack deal, its administrators confirmed to Fashion Network on Friday.


Joy



Chris Errington of the administrator KRE Corporate Recovery told us that the firm had filed for administration earlier this week and its owners had now formed a “new entity” to buy it. He said 21 stores have been saved with 11 set to close and 78 jobs to go

The company, which sells both fashion and lifestyle products, had been facing the same problems that undermined a number of other UK high street chains with high rents and property taxes having dealt the final blow.

Joy, which sells womenswear, menswear, homewares and gifts, has stores across the country with a concentration in the London area.

It joins Jones Bootmaker, Brantano and Agent Provocateur as the most high profile victims of the squeezed retail scene in Britain this year.

The administrator highlighted the usefulness of pre-pack deals in saving jobs, although they have proved controversial with creditors seeing them as a way for firms to escape their property obligations and potentially avoid paying other bills.

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