Treds bought out of administration, all stores saved
today Feb 14, 2019
Good news for failed footwear retailer Treds. Just a few weeks after it went into administration, the company has been bought out by retailer New Gray Ltd which said it would keep all of the 21 stores open.
That’s an unusual move for new owners with the general trend in recent years having been for new management to take advantage of the opportunity to exit any underperforming or expensive store locations.
The business employs around 159 people and revealed a large fall in profits last month and had called in turnaround specialists at PricewaterhouseCoopers (PwC) to try to find a buyer.
But with no takers for the firm as a going concern at the time, it became the latest of a string of small UK retailers to file for administration.
On Thursday, joint administrators Ross Connock and Zelf Hussain of PwC confirmed that it would be business as usual at the stores and the webstore under the new owner.
Connock said: “In an extremely challenging environment, the sale provides a much needed boost for the retail sector and high street and stability for employees.”
At the time of the administration filing he had said that the Weymouth, Dorset-based business “has faced similar challenges to those seen across the retail sector, including changing consumer behaviour and economic uncertainty.”
Clearly those challenges are still there so it remains to be seen how it will fare from here.
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