Mon, 10 May 2010 | ADMINISTRATION
Directors of a chain of department stores have said they are hoping their company can be sold as a going concern, after it went into administration on Friday.
The management of Vergo Retail was unable to secure a financial restructuring deal and broke the news to its 942 staff at 19 stores nationwide on Friday afternoon.
Aministrators MCR have been appointed.
Vergo managing director and owner David Thompson said he was "shell-shocked" at the turn of events, but hopeful that MCR would be able to sell the business as a going concern.
Asked whether he would consider buying back the business, he said: "At this stage I have not even considered that as all of my energies have been used trying to keep it going."
Vergo's stores include Lewis' of Liverpool, Robbs of Hexham, Joplings of Sunderland and Derrys of Plymouth.
It is the second time in recent years the company has faced administrators: Vergo was established in 2007 after it bought out the previous owner of some the stores after they went into administration. It added stores in Devon and Cornwall to its portfolio in 2009.
Vergo has been trading at a loss throughout 2010.
Sarah Bell, of MCR, said: "Unfortunately the company has endured periods of financial loss. Like many retailers, it has experienced a difficult trading environment during the economic downturn."
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