Rinku Group buys Bay Trading out of administration

LONDON May 19 (Reuters) - British fashion retailer Bay Trading has been bought out of administration by clothing wholesaler and retailer Rinku Group, administrator Deloitte said on Tuesday.

The former owner of Bay Trading, Alexon Group (AXN.L), put Bay Trading into administration in April after a credit insurer withdrew cover to the loss-making unit. [ID:nLO176248]

Before the sale, Bay Trading operated 175 stores in Britain employing more than 1,500 people.

Rinku has bought 45 outlets of Bay Trading and 85 concessions, Deloitte said, preserving 566 jobs. Deloitte did not disclose the cost of the acquisition. (Reporting by Tom Freke; Editing by Hans Peters)