High street fashion chain East goes bust putting 314 jobs at risk
HIGH STREET fashion chain East has gone into administration putting 314 jobs at risk.
The retailer, which first opened its doors in London in 1994, has 34 stores and 15 department store concessions around the UK.
The womenswear chain initially fell into administration in June 2015 but it was rescued by Indian chain store, Fabindia
It closed 15 stores and five concessions in a pre-pack deal.
But a tough trading environment had lead to administrators being called in less than a year later.
The shop remains open while they evaluate options for selling the business.
Last year, insolvency experts warned that many retailers were "running out of time" to agree new deals.
Research by Begbies Traynor showed 43,677 UK retailers are showing signs of “significant” financial distress.
This is a 22 per cent rise on December last year when 35,845 found themselves in a perilous position.
At the beginning of December troubled Toys R Us announced it was set to close a quarter of its stores.
Today a last minute deal has been agreed with the Pension Protection Fund, which will stave-off the threat of administration for now.
Your shopping rights: How to protect yourself from a store going bust
THERE are consumer laws in place to help protect you
- If you're buying an item worth more than £100, then it's worth making the purchase on credit card
- Under Section 75 of the Consumer Credit Act, you can claim money back from your card provider if there's a problem like the item is faulty - or more importantly - the company goes bust and can't deliver your items
- For items worth less than £100 or you bought something with your debit card, you can try and claim your money back through something called chargeback
- If you've bought presents online and paid by PayPal, you may be able to get money back by its Buyer Protection policy if they don't arrive or it doesn't match the seller's description
- If you're worried about a shop going bust or you know it's at risk then you should use any vouchers or giftcards asap
Back in 2008, kids' favourite Woolworths closed it doors for the final time - with the loss of 30,000 jobs.
JJB Sports - which was founded by former Wigan Athletic chairman Dave Whelan -collapsed in 2012 with debts of around £150million.
The same year, electronics store Comet also collapsed.
Fashion brand American Apparel closed 12 of its 13 stores in the UK right before Christmas last year with 150 staff losing their jobs.
Last month, Marks and Spencer said it would be speeding-up its plans to close 30 stores across the country due to tough trading conditions.
MOST READ IN MONEY
Department store BHS entered administration in 2016, with former boss Sir Philip Green coming under for selling the business for just a £1 a year before it collapsed.
Joint Administrator Geoff Rowley said: “Unfortunately East is the latest high street casualty following a tough trading period at the end of last year.
"The retailer was making progress to expand its footprint, particularly looking at international opportunities, however it has been unable to secure the necessary funding to realise those plans.
“We’re now working closely with all stakeholders to evaluate the options to sell all or parts of the business.”
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516. Don't forget to join the for the latest bargains and money-saving advice.