Administrators secure purchaser for Brown SugarDOWNLOAD
30 September, 2011: The Administrators of fashion chain Brown Sugar today announce that they have secured a buyer for the Brown Sugar business, with settlement expected to take effect from close of business today.
One of Brown Sugar’s administrators, Deloitte Partner Sal Algeri, said that the purchaser was a company called Brand Directions and that the retail chain would continue to operate under the Brown Sugar name.
“Given the current retail environment, the Administrators are extremely pleased to have been able to secure a purchaser who is keen to continue operating the business.”
Mr Algeri said it will come as welcome news for many of the business’ existing staff who had faced the possibility of losing their jobs after the chain was placed under voluntary administration last month.
In addition it provided a number of Brown Sugar landlords the opportunity to retain a tenant.
“Brand Directions has indicated it will seek to keep the remaining 16 Brown Sugar stores open and offers of employment will be made to approximately 100 existing staff members,” Mr Algeri said.
“Any outstanding entitlements of those staff members who elect to accept these offers will be transferred to the new owners.”
“Brand Directions has also indicated that it is considering re-opening some stores that have already closed and re-hiring a number of staff who lost their jobs as a result.”