The administrators who saved over 150 jobs at a footwear chain in a last-minute rescue deal have appointed CAPA to audit all the retailer’s stores.
CAPA will now be conducting property audits at more than 20 tReds stores, after administrators at PwC struck a deal to sell the business out of administration to the retailer New Gray.
The business had faced similar challenges to those seen across the retail sector, including changing consumer behaviour and economic uncertainty. This resulted in reduced revenues across the store portfolio.
In the end Ross Connock and Zelf Hussain of PwC were appointed joint administrators of the company on January 29 2019. On February 8 the administrators sold the company to New Gray Ltd.
The sale includes all 21 tReds stores across the UK and its online business, with all employees transferring to the new business. All stores remained open during the period prior to the sale.
The administrators have now instructed CAPA to conduct the property audits, meaning CAPA’s team will use bespoke software to carry out a forensic inspection of all costs, including bills and management service charges, paid out across the 21 locations.
The auditors will inspect the data to identity any anomalies or errors, to establish if any sums can be renegotiated, and if any refunds and recoveries can be made for creditors.