More jobs at risk as kids' stores fail

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Sunday, December 28, 2008
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This is Bristol

More Bristol jobs are under threat after childrenswear chain Adams became the latest victim of the economic downturn.

The 75-year-old company – which makes clothes for Boots and has its own brand Adams kids stores – filed a notice of its intention to appoint PricewaterhouseCoopers as administrators on Christmas Eve.

Adams has two local branches, one in South Parade, Yate, and another in The Mall, Broadmead.

The company's woes come hard on the heels of the collapse of tea and coffee merchant, Whittard of Chelsea, music chain Zavvi and menswear retailer The Officers Club, which all fell into administration in the days before Christmas and all of which have branches in Bristol. The Officers Club and Whittard were subsequently sold.

Adams – which sells babywear, school uniforms and clothes for children from two to 10 years – has around 260 stores among its 500 distribution outlets in the UK and is understood to employ around 2,000 people.

The company is owned by Northern Ireland businessman John Shannon, who bought it out of administration in February last year, closing 42 of its shops.

It had appeared to be beginning to show signs of improvement under Mr Shannon, and the company posted a 25 per cent increase in like-for-like sales in both boys' and girls' fashion ranges in spring this year.

But a sharp deterioration in trading, combined with competition from supermarket chains, have reportedly hit its ability to service its debts. Pressure from creditors in recent weeks is believed to have pushed the company over the edge.

Adams is reported to owe £10 million to Burdale, an arm of the Bank of Ireland, and just over £20 million to Mr Shannon.

A spokeswoman for PWC said it was not certain when the firm would be formally appointed as administrators for the business.

"They put the thing into court on Christmas Eve but I cannot really say much more than that," she said.

Adams was founded in Birmingham in 1933 by Amy Adams and is celebrating its 75th year.

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  • Profile image for This is Bristol

    by lorraine, bristol

    Monday, December 29 2008, 11:19AM

    “its sad to think adams might be going i use to always buy my childrens clothes from them when they were younger”

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