MCR Statement on Vergo Retail Limited

MCR Statement on Vergo Retail Limited

Sarah Bell and Steven Muncaster, Partners at MCR and joint administrators of department store business Vergo Retail Limited ("the Company"), have today announced closing down sales of nine retail outlets, and regrettably the redundancy of 335 positions across the business with immediate effect.

The announcement follows MCR's appointment as joint administrators on Friday, 7 May 2010. Sarah bell, Partner at MCR says the nine stores were deemed to be loss making and are expected to close within the next four weeks; however, a purchaser for these stores will not be ruled out until they finally stop trading.

"Following a financial review of the business it was apparent it could not continue to trade in the short term without implementing immediate cost saving measures. Regrettably, this means that 335 positions have been made redundant with effect from today. There is an opportunity for interested parties to come forward and rescue the remaining business as a going concern," stated Sarah.

The joint administrators have been in regular dialogue with all stakeholders including trade unions and local government authorities during this time, to discuss the immediate prospects of the Company and that of the employees.

A closure date for Lewis's department store in Liverpool has also been confirmed to be within the next four weeks, following an announcement prior to the administration that it was set to close. The remaining 10 stores will continue to trade as usual in the short term while a purchaser for the business is sought.

• The final list of stores for closure:

1) *** Liverpool (this is additional store closing down outside the actual administration case - it is not counted as one of the nine)
2) Sunderland
3) Hexham
4) Whitam
5) Clacton on Sea (Department Store)
6) Stowmarket
7) Derry's
8) Colchester Jewellery
9) Norwich
10) Dovercourt

About MCR
MCR was formed in April 2001 to offer turnaround, restructuring and insolvency services of outstanding quality to banks, lenders, business owners and individuals in the mid-market sector. It aims to provide the most practicable ways to resolve issues affecting business performance.

The firm has 12 partners who practice an ethos of high-level involvement to ensure that each assignment capitalises upon the expertise and knowledge of the whole team.

MCR regularly handles significant projects across a range of sectors and has been involved in a number of high profile cases. MCR is increasingly being asked to restructure businesses and find turnaround solutions to help companies avoid formal insolvency. Sectors include retail, financial services, property, manufacturing, printing, recruitment, hotels, leisure, e-commerce, automotive, telecommunications, music, entertainment and construction.

For more information, www.mcr.uk.com


For further information, please contact:
Richard Merrin / Luke Derbyshire
Spreckley Partners Limited

T: 0207 388 9988
E: merrin@spreckley.co.uk  
E: derbyshire@spreckley.co.uk