Austin Reed to go into administration - reports

Upmarket High Street retailer Austin Reed was set to become the second iconic British name to go into administration in as many days, UK media reported on Tuesday.

AlixPartners, a professional services firm, was expected to announce it had been appointed as administrator to Austin Reed after being unable to find a buyer over recent weeks.

The chain, which operates about 155 stores, was expected to continue to trade during the period of administration.

US hedge fund Alteri Investors, backed by Apollo Global Management, recently took control of the retailer, whose customers include the head of the International Monetary Fund, Christine Lagarde, the Guardian reported.

On Monday, BHS went into administration, putting 11,000 jobs at risk. There has been furious criticism of its former owner, Arcadia chief Philip Green, who sold the company for £1, but left it with a £571m pension deficit having taken out £400m in dividends.

Alteri bought Austin Reed’s debt and equity from Darius Capital, a group controlled by property tycoon Guy Naggar, who was previously involved in the now collapsed investment company Dawnay Day, the report added.

Alteri’s chief executive, Gavin George, said last week: “We decided to acquire the equity and shareholder loans to protect our position as secondary lenders to Austin Reed, behind Wells Fargo who remain senior lender.”