Fashion retailer East to cease trading in May with loss of nearly 300 jobs

High Street retailer East is due to cease trading next week after administrators failed to find a buyer, City A.M. can reveal.

Almost 300 employees will be made redundant when the chain stops trading on 4 May.

This follows the redundancies of 27 staff after the company fell into administration in January.

Administrators at FRP Advisory said that they had been unable to find a buyer for the business, despite receiving at least three approaches.

But they insisted that a last-minute sale of all or part of the business could be agreed.

“Discussions are still ongoing and we continue to explore avenues for a sale to secure the best possible outcome for all parties,” a spokesperson told City A.M.

According to a creditors’ report filed with Companies House, the company initially continued trading following the appointment of administrators. It was hoped this would maximise value from the stock and maintain the brand’s reputation in case it could be sold.

But now the clothing chain is to shut its doors. One lease on a store in Reigate was sold in March for £75,000. Another 12 stores are to close as the leases are transferred to other parties.

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The move comes three years after East closed 19 stores and entered pre-pack administration three years ago.

The new company which took its place, called East Lifestyle, was loss-making from its inception, according to the report.

Creditors of the company are owed money to the tune of just over £10.1m.

The stores will continue trading until the end of next week, although gift cards are not being honoured.

The group’s administrators were in line for bills of £174,045 as of the beginning of April.

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