The administrators of Au Nat Limited said yesterday they have completed the sale of 46 remaining Au Naturale stores, saving 550 jobs in Scotland.
This deal, together with others that have been previously announced, has resulted in 1900 jobs in total being saved and the preservation of the Au Naturale and Internacionale brands. Au Naturale sold homewares, while Internationacle specialised in fashion.
Graham Martin, joint administrator and partner at PricewaterhouseCoopers in Glasgow, said: "I am delighted we have managed to secure a sale that not only preserves a strong high street brand but also protects the employment of 550 people. We will continue to trade the remaining 13 stores while we continue to assess the options available."
Au Nat Limited - formerly Internacionale Limited - was placed into administration on May 7 following financial difficulties resulting from the general retail downturn together with major operational problems in the supply of stock from its warehouses to the retail outlets. On April 8, 31 Au Naturale shops were sold to English-based Opus Estates, saving about 500 jobs.
All Internacionale branded stores were sold on May 1 to a mysterious buyer. The firm has still not been named but is believed to be an India-based multinational textile firm.
According to documents seen by The Herald, creditors of Au Naturale and sister company Internacionale are owed almost £19m Internacionale and Au Naturale were once owned by Ossian Retail, which ran into financial trouble. Ossian is now controlled by London investor Agilo, which specialises in distressed firms. Former Conservatice cabinet minister Michael Portillo is listed on Agilo's website as one of five members on the group's "advisory panel".
Ossian's problems are widely regarded as another sign of stress in the UK retail sector and the global credit crunch. Its financial difficulties are understood to have contributed to the demise of a number of suppliers, including Lanarkshire-based haulage group Ramage Distribution.
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