Devon based Saltrock Surfwear has been sold off in a pre-pack deal to a subsidiary of Crew Clothing after entering administration last week. Five stores will be closed leaving Crew Clothing with a chain of 25 stores with 162 employees going forward. The stores which have closed are located in Exeter, Plymouth, Bridgend, Swansea and Street. Administrators David Pike and Mark Orton from KMPG conducted the sale as soon as they were appointed.
It was known to Direct Commerce several months ago that the Saltrock business was in difficulty as it had sought a finance professional to support its management team when the incumbent CFO stepped into the CEO role. Product quality had fallen and its ranges were known in the Devon area to be at the value end of the market and its non-stop sale promotions had seriously devalued the brand which had been financed in recent years by former Plymouth Argyle chairman James Brent.
David Butler, CEO of Crew Clothing said that Saltrock presents a huge opportunity and allows it to maximise its supply chain and operations. It is not yet known what functions will be centrally handled by Crew team members or how many of Saltrock’s head office team can expect to keep their jobs.
Joint administrator David Pike said: “Following recent challenges the business has faced and in line with current experience across the retail sector, the management team has worked hard to turn the business around and create a platform for Saltrock to survive.”
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