Fashion chain Morgan has been put into administration and some 600 staff made redundant, administrators KPMG said last night.
The chain, which has outlets in Birmingham and the Black Country, has suffered from the "difficult trading conditions" on the high street, with like-for-like sales down nearly 20 per cent in the first six months of the year.
The move follows the with-drawal by French parent company Morgan SA of its distribution agreement in the UK, and means some 19 stand-alone stores and 47 department store concessions will close.
Administrator David Crawshaw said: "Morgan has suffered from difficult trading conditions on the high street.
"Trading for the first six months of the financial year to June has been poor with like-for-like sales down 19.1 per cent to £11.8 million.
"As a result of this and subsequent losses, the company faced an increased fund-ing requirement to pay wages, landlords and creditors.
"The company's shareholders were not able to raise the additional finance.
"Consequently, Morgan SA withdrew the distribution agreement with immediate effect. In addition, Morgan SA exercised its rights over retention of title on stock, which left the company no alternative but to enter into administration."
Mr Crawshaw added: "We have received expressions of interest. However, without a distribution agreement and stock, it will not be possible to continue to trade the business. As a result, we have wound down the business and regrettably made approximately 600 staff redundant."
