BELEAGURED North-East menswear retailer Officers Club is in administration for the second time in just over two years, but a rescue plan emerged last night which could save hundreds of jobs.
The Northumberlandbased business, which employs about 1,200 staff across 106 stores, first collapsed shortly before Christmas 2008, but at the time the chain was rescued by founder and chief executive Dave Charlton.
Tough trading conditions have again left the business in trouble, with administrators Grant Thornton appointed yesterday.
However, fashion retailer Blue Inc, which is keen to expand into the North-East and Scotland, has bought 46 stores from Officers Club, saving 500 jobs, in a deal thought to be worth about £5m.
Grant Thornton said the remaining stores and the warehouse have been closed with immediate effect.
Blue Inc will also buy the Petroleum brand, which is understood to have performed well in outlet centres.
Officers Club’s problems offered the latest evidence of a challenging spell on the high street as consumer caution and rising raw material costs take their toll.
Earlier this month, menswear group Henleys put all 18 of its stores into administration, and sportswear retailer JJB avoided administration by coming to an agreement with creditors.
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