Blood on the high street as big names set for insolvency
Dwell, Internacionale, ModelZone and Ark all set to enter insolvency around the quarterly rent due date
A SLEW OF ADMINISTRATIONS are to hit the high street, with Dwell, Internacionale, ModelZone and Ark set for insolvency.
Furniture retailer Dwell has already entered an insolvency process with John Whitfield and Philip Duffy, both from Duff & Phelps, appointed administrators.
Fashion retailer Ark has lined up practitioners from Begbies Traynor; Internacionale, which has about 150 stores, has filed a notice to appoint Ernst & Young administrators; and ModelZone, which has 47 stores, is set to bring in Deloitte practitioners – The Daily Telegraph reports.
According to the administrators of Dwell, all 23 stores will close as well as its concession in the House of Fraser.
John Whitfield, joint administrator at Dwell, said: “Following our appointment we will be formulating a strategy for the administration. Employees will be notified of their position as soon as possible.”
He added that the position of whether or not customer gift vouchers would be honoured is still unclear. Usually in an administration gift voucher holders become unsecured creditors and are one of the last to be paid, alongside the taxman.
The influx of retail administrations are due to take place just before quarterly rent is due, known as ‘quarter day’. In administrations quarterly rent is paid as an unsecured creditor, after secured creditors and the cost of administration.
