Friday 30 September 2011

 

The deal allows , the buyer, to shunt Alexon's £12.9m of debts while still protecting 2,700 staff jobs. The deal saves Alexon, which specialises in older women and plus-sizes, from becoming the first victim of this month's "quarter day", when many retailers have to pay their landlords. Quarter day fell on Thursday. "Pre-packs" are controversial because suppliers and debt holders often at the mercy of cynical owners who rid themselves of liabilities while at the same time buying back the company. In the Alexon deal, the suppliers and staff should be fully protected, the debt-holders are expected to see some of their money back, but the shareholders are not expected to see a penny. Over the past year, shares in Alexon, which owns fashion brands Kaliko and Eastex as well as Ann Harvey, have plummeted 85pc. This left the company with a market value of just £4m – less than a third of its net debts.

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