JAG Communications has gone through a ‘pre-pack’ administration in an attempt to secure the future of the business.
Following a closure of all stores, for a reported stock check, founder John George (pictured) called a summit meeting in Bristol and news of the administration followed.
The ‘pre-pack’ administration will see JAG Communications’ (Plymouth) assets sold to a new company JAG Communications (South West), in a move to secure 245 jobs and the company’s 75 retail outlets.
The new company can now continue to trade as usual and is not in administration.
“We’ve been told everything is the same as normal and everything’s fine,” said JAG marketing and media manager Mark Mitchell. “The shops were all closed which I have never seen before but will be open again tomorrow.”
The move is part of a restructuring and recovery attempt by specialists Begbies Traynor’s following difficulties arising from the company’s aborted attempt to buy 59 Go Mobile stores in the summer of 2008.
As part of a new form of administration the new company will continue as a viable company while the old company remains in the hands of administrators.
George said: “It will be very sad to see the old company go, but we are really very pleased to be able to secure the jobs of almost all our staff across the company. As with most retailers, we will be looking for a period of consolidation before we look to take the company forward again.“