Just Hype, the streetwear retailer, has been rescued in a pre-pack administration deal, saving all 82 jobs. Birmingham-based investor Sarjon Dulai has acquired the business for an undisclosed sum after it entered administration on 31 March 2021, according to Drapers.
Just Hype, the streetwear retailer, has been rescued in a pre-pack administration deal, saving all 82 jobs. Birmingham-based investor Sarjon Dulai has acquired the business for an undisclosed sum after it entered administration on 31 March 2021, according to Drapers.
The retailer will continue to trade online and through its stockists under its new ownership, with no significant changes to the business or its products. Just Hype appointed Carl Jackson and Kelly Mitchell of Quantuma Advisory as administrators last month, after it faced falling sales and excess stock accumulated during the pandemic.
Co-founder Bav Samani said: “As with many online retailers we expanded very aggressively during Covid and in the aftermath were left with a large stock overhang. In addition, we had spent a considerable amount on advertising which although elevated the brand significantly left us heavily indebted.”
Samani added that falling sales amid the cost-of-living crisis left the brand “very exposed and unable to trade effectively”. He said: “Our new investor has a strong international distribution network which will be of mutual benefit to us both as the brand continues to grow both domestically and internationally. We do not anticipate any significant changes to the business, our products or services, or our commitment to our customers. Instead, the new investors will enable us to continue to grow and operate with greater strength and agility, helping us achieve our long-term goals and objectives.”
The pre-pack administration deal for Just Hype is the latest in a series of similar deals in the retail sector, as businesses struggle to survive the pandemic. According to the Centre for Retail Research, over 1,000 retail businesses have gone into administration since the start of the pandemic, with over 100,000 jobs lost.
The British Retail Consortium (BRC) has called on the government to provide more support for the retail sector, including extending the business rates holiday and providing more access to finance. BRC chief executive Helen Dickinson said: “Retailers are facing an unprecedented crisis and the government must act now to ensure that the sector can survive and thrive in the future.
Sources: https://www.retailgazette.co.uk/blog/2023/04/just-hype-pre-pack/
