The UK arm of the clothing retailer was put into administration at the end of June, with all 47 department stores and 19 standalone stores being closed with the loss of 600 jobs. David Crawshaw and Myles Halley of KPMG have been appointed as administrators.
The administrators were called in when Bank of Scotland, Morgan’s main creditor, decided to pull the plug. The company has seen like-for-like sales fall 19.1 per cent for the first six months of the year and was unable to raise the additional finance needed to pay wages, landlords and creditors.
Those close to the administration are hopeful that a buyer will be found for the business.
DLA Piper’s retail administration practice landed the mandate to advise KPMG, led by partner Simon Neilson-Clark. The firm has advised the administrators on many of this year’s retail cases, including those of off-licence Unwins and entertainment chain MVC.
Weil partner Chris Mallon is acting for Morgan SA, the parent company of Morgan in the UK. Morgan SA is owned by Apax Partners, which bought the retailer in 1998 and which is a key client of Weil’s private equity practice.
Maclay Murray & Spens partner Philip Skerrett is acting for Bank of Scotland.