Hemmed in: Alexon seeks rescue

In talks: fashion house Alexon has been battling to restructure for months

11 April 2012

Alexon Group, the embattled women's fashion house, is close to securing a rescue takeover deal with US private equity firm Sun European Partners.

The firm behind the Ann Harvey, Dash and Kaliko brands has been hoping for a deal for some months as it battles to restructure.

Retail analysts say that while its clothes are popular, the company is blighted by a lack of cash and needs time away from the glare of the stock market to rebuild.

Today it requested that its shares be suspended "pending clarification of the company's financial position". The company employs 2,700 staff across more than 990 outlets in the UK and Europe.

Alexon, which has been around since 1929, has been in talks with its lenders, Barclays. The statement said: "The board now believes it is increasingly unlikely that a solution to the funding issues that the group faces can be secured in the necessary timeframe.

"The Board understands that the Administrators have today sold the Group's business to Sun Capital Partners LLP, securing continuing employment for the Group's staff."

The company, which also owns the Dash and Minuet Petite chains, suspended its shares at 2.8p, valuing the company at £4 million.