Adams confirms creditor's action

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Adams has confirmed it could go into administration this week after a creditor began proceedings against the childrenswear retailer.

The notice of intention to appoint administrators, which expires on 2 January, was filed on Christmas Eve, the company said.

Adams said directors were looking to raise funds to avoid administration.

It said it had been hit hard by the slowdown in High Street spending and tighter credit controls by banks.

"The downturn in the High Street retail market and the general tightening of the financial markets has adversely affected the financial position of the group," the company said in a statement.

"The directors are currently working with its funders to resolve the situation and anticipate making a further announcement with the next week," it added.

The creditor nominated PricewaterhouseCoopers (PWC) as administrators, but the accountancy firm told the BBC it had not yet been appointed.

If the company fails to raise sufficient funds, the notice of intention will lapse and it is then up to the creditor to decide whether to call in the administrators.

Adams has 260 outlets in its UK chain and 103 internationally, employing about 2,000 people.

The company, which is celebrating its 75th year, was originally founded in Birmingham.

High Street retailers that have already gone into administration include Zavvi, MFI, Whittard and Woolworths.

The insolvency experts Begbies Traynor predicted only a week ago that up to 15 national retail chains would go bust by mid-January.

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