Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Administrators shut 50 Fosters shops

Nigel Cope City Correspondent
Friday 10 April 1998 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

ADMINISTRATORS to Fosters Trading, the menswear retailer which collapsed last month, are to close 50 of the group's stores with the loss of up to 400 jobs. The move is part of a rationalisation programme designed to stabilise the company before it can be offered for sale.

Further closures among the chain's 175 outlets cannot be ruled out as the administrators, BDO Stoy Hayward, continue with their three-month review. Fosters currently has 1,700 staff.

Directors called in the administrators after the company's bankers said they could no longer provide adequate financial report. Fosters' stores have been hit by sales of branded sportswear which has affected sales of its own denim and casualwear ranges. A disappointing Christmas and a deteriorating market led the group's bankers to call for a review of operations. The directors then applied for an administration order.

Fosters was founded in 1876 and was part of the Sears retail empire until 1992. It was then the subject of a management buy-out led by David Carter- Johnson. But with a weak brand and an increasingly competitive market it has found the going tough. It now has significant debts and recorded a loss of pounds 2.1m last year on sales of pounds 95m.

BDO Stoy Hayward is concentrating on stabilising the company's finances before any decision is made on a possible sale. BDO's David Gilbert said the plans was to turn Fosters into a leaner and profitable company "providing a platform for future growth".

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in