About 850 staff were made redundant at failed childrenswear chain Adams yesterday after administrators announced the closure of 111 stores.

PricewaterhouseCoopers (PwC), appointed to the firm on New Year’s Eve, said the job losses were “inevitable” but added it had received expressions of interest in the Adams business and brand.

The remaining 160 stores will stay open while a buyer is sought.

Adams continues to employ 2,350, and PwC said it was “hopeful” of being able to sell some parts of the business.

Rob Hunt, joint administrator and partner at PwC, said yesterday: “In light of the current downturn being experienced on the high street, it is with regret that it has been necessary to effect the closure of 111 stores throughout the UK as of today.

“Unfortunately, this will inevitably lead to a number of job losses and 850 people across the company will be made redundant with immediate effect. My team and I will be doing all we can to help these employees at this difficult time.”

Stores are being closed at locations including Bearwood in Birmingham, Walsall, Glasgow, Leeds, Blackpool, Coventry, Bolton and Wigan.

Adams, which was launched in Birmingham 75 years ago, said late last month that it was calling in administrators after a creditor began proceedings against it.

Administrators have not been appointed to an associated group company, Mini Mode Childrenswear, that has a joint venture agreement with Boots to supply clothing under the Mini Mode brand.

Adams operated from 270 stores and concessions in the UK, while it also supplies a number of overseas franchises.

But the group has hit troubled times before, which saw it bought out of administration in February 2007 by Northern Ireland businessman John Shannon – a move which at the time led to some 42 stores being closed. Mr Shannon – a former chairman of footwear firm Stead & Simpson and clothing chain Country Casuals – drove the company towards affordable children’s fashion and launched its “kids love fashion” branding.

Adams, which sells babywear, school uniforms and clothes for children from two to ten years, had appeared to be beginning to show signs of improvement under Mr Shannon.

It posted a 25 per cent increase in like-for-like sales in both boys’ and girls’ fashion ranges in spring last year.

But a sharp deterioration in trading combined with competition from supermarket chains have reportedly hit the group’s ability to service its debts.

Adams was founded in Birmingham in 1933 by Amy Adams and celebrated its 75th anniversary last year.

The group’s collapse marks the latest in a recent string of company failures, following groups such as Woolworths, music and entertainment chain Zavvi, and MFI into administration.