Insolvency firm MCR was called in on Friday to Adams’ parent company, JS Childrenswear. MCR partner Paul Clark said “all options” were being considered for the business, which has 120 stores across the UK and also supplies clothing to Boots under the Mini Mode brand.
“Like many retailers, it has experienced a difficult trading environment during the course of the past 12 months which has been exacerbated by a further downturn and general tightening of the credit markets,” he said. “We are now looking at the viability of the business with a view to securing a going-concern sale.”
This is the third time Adams has fallen into administration in three years. The firm was bought out of administration by Northern Ireland businessman John Shannon in February 2007. He stepped in again the following year and recently sold the company to Pakistani firm Habib Alvi Investments.
Adams was once one of the UK’s largest independent childrenswear retailers. At its height it had 271 stores, but has been unable to compete against the buying power of bigger chains such as Asda and Tesco.
It has been a busy time for insolvency firm MCR. A specialist in corporate recovery, restructuring and forensic investigations since 1981, Paul Clark co-founded MCR in 2001 and has spent the past few years grappling with the collapse of some big high street names. Clark was the administrator for Travelscope, the tour operator that collapsed in December 2007, ruining Christmas holiday plans for 10,000 customers. He has also been the administrator for MFI, Allied Carpets and The General Trading Company, the luxury Sloane Square store. MCR is also acting as administrator for the book retailer Borders.