A Sussex discount fashion retailer has been saved from liquidation but further job losses are on the cards.

Struggling QS, which has its headquarters in Fishersgate and its distribution warehouse in Goring, has reached an agreement with creditors pulling it back from the brink of liquidation.

Subject to there being no challenge to the agreement in the next four weeks, it means nationally about 3,000 staff at QS and BeWise, which is part of the same group, will not lose their jobs.

But the distribution network will be relocated to Solihull, meaning workers at the Goring warehouse and at Fishersgate are deemed part of the non-core business and still face redundancies.

Hamsard 2353, which owns QS and BeWise, went into administration earlier this year after poor sales.

A series of shop closures, including the QS flagship store in Churchill Square, Brighton, have been made since then and more closures are expected to follow in Sussex.

Adminstrator Malcolm Shierson said: "The alternative would have been liquidation which would have meant the loss of about 3,000 jobs and returned less to creditors than this Company Voluntary Arrangement.

"I appreciate support of this CVA by the major creditors and would also like to thank the staff for their cooperation in a very difficult time."

Thursday, March 30, 2006