Fashion chain crisis closes shops

The business focuses on high end and exclusive fashion items

Designer fashion store Cruise has closed three stores and is reviewing a number of others after being forced to call in administrators.

The Glasgow-based chain hit problems after funding for a planned expansion, from an Icelandic firm, was withdrawn.

The business is being bought from administration by management and will continue under the same name.

It operates in Scotland, the Midlands and Northern Ireland. Shops in Chester, Leicester and Birmingham have shut.

Administrators Deloitte said: "The company found itself in financial difficulty following its expansion in the latter months of last year.

"The expansion was to be funded by Icelandic company, Kcaj, which, as a result of the economic downturn was unable to inject the agreed funding, placing a significant strain on the business.

"The management undertook a protracted and extensive search to find a buyer but none were identified and the decision was taken to restructure the company via an administration."

The stores in Chester, Leicester and Birmingham have already been closed and the management of the new company is reviewing which of the rest of the stores it can continue to operate.

About 30 jobs have been lost in the store closures but it is not known how many others posts may be under threat.