Alexon in and out of administration
29 September 2011 13:25
Embattled fashion group Alexon was this morning put into administration, having been unable to raise further working capital from either banks or shareholders, but was subsequently bought by Sun Capital Partners LLP, owners of the SCS sofa business.
The day had started ominously for Alexon with its board having requested a suspension of the listing and trading of its shares.
The group cited ongoing funding issues for the move; its board had been seeking to extend its banking facilities but the difficult trading conditions combined with its inability to raise further funds from shareholders and, of course, the rent burden of yesterday's 'quarter day' put paid to any hopes of such an extension.
As such administration was all but inevitable.
There had been strong rumours of a number of potential bidders circling Alexon, including Debenhams and Sun Capital Partners, with Debenhams believed to be interested in acquiring only some of the group's brands.
A lunchtime statement from Alexon clarified the matter: "The board understands that the administrators have today sold the group's business to Sun Capital Partners LLP, securing continuing employment for the group's staff."
Alexon employs around 2,800 staff.
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