The administrators of Blue Inc, the fashion retailer previously rescued from collapse, have appointed CAPA to audit over 120 stores across the chain.
CAPA will be conducting a rates audit across at least 121 outlets throughout Blue Inc’s U.K. portfolio, having been instructed by administrators at Begbies Traynor, the business advisory firm.
Blue Inc had endured severe financial difficulties in the past two years. In January 2016 the business placed its trading subsidiary A Levy & Son into administration, before buying back parts of the business including stores in a pre-pack deal led by corporate rescue and advisory firm Leonard Curtis. This deal safeguarded 1,500 across the company.
Later, in March 2017, Blue Inc underwent a company voluntary arrangement (CVA), managed by Begbies Traynor. The CVA improved the firm’s financial position, enabling it to continue trading by securing concessions on its debt and rent liabilities.
However the company continued to experience severe trading conditions and on December 10 2018, Begbies Traynor were appointed as administrators.
They have now instructed CAPA to conduct the rates audit across the 121 stores. This will involve a forensic analysis, using bespoke software, of business rates paid out across the properties. CAPA’s team will seek to discover any errors, anomalies and ‘overspend’ in the invoice data. These sums will then be recovered for Blue Inc’s creditors.
As well as the 121 stores, CAPA will also be undertaking a rates audit of stores that were closed when A Levy & Son initially entered administration in 2016.
