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Glasgow Live
Glasgow Live
National
Kirsty McKenzie

Glasgow jobs at risk as Boohoo buys Karen Millen and Coast

Karen Millen is moving ahead with a wave of store closures that could see two Glasgow branches shut for good and put dozens of jobs in the city at risk.

Employees were told that the stores has a limited lifespan after online retailer Boohoo struck a deal to buy Karen Millen and Coast's online businesses out of administration for £18.2million.

The deal did not account for the physical stores and could well see the closure of Karen Millen and Coast’s 32 high street branches and 177 concessions and leave 1,100 workers unemployed. 

The retailers have concessions in House of Fraser in Glasgow, while Karen Millen also has a store at Princess Square that is currently hosting a closing down sale.

A total of 62 head office staff have already been made redundant, while the stores and concessions will continue to trade for “a short time”, according to administrators Deloitte.

It was first reported in June that Karen Millen was seeking a buyer and the chain was bought along with Coast in a pre-pack sale last week.

In a statement released by Deloitte, joint administrator Rob Harding said: "As we continue to see, the retail trading environment in the UK remains extremely challenging.

"Karen Millen has been seeking to address the financial challenges that it faced by pursuing a sale of the business and, whilst a sale of the whole business has not been deliverable, the Boohoo transaction facilitates the survival of these iconic British brands through an online platform." 

A representative from administrators Deloitte told Glasgow Live that the stores are all trading in the short term but could not comment further.

For more breaking news and all that's going on in your city, head to the Glasgow Live homepage - or you can check us out on Facebook, Twitter and Instagram.

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