Adminstrator allays fears of staff at Adams store in Bow Street

The workers have received letters telling them their employment remained with the company and that the terms of employment were not altered by the development.

In the letter Joint Administrators Paul Clark of MCR and Ian Yerill of Gerald Edelman said: "The Join Administrator do not adopt your contract of employment and whilst the contract is not adopted the Joint Administrators are unable to guarantee the certainty of your employment. In addition your arrears of wages and salaries are not guaranteed.

"In the event that there are insufficient funds available you will need to claim from the Redundancy Office and the Joint Administrator will provide you with the necessary forms."

One local staff member said that she feared for her future with the company.

"I have children and if our salaries are stopped what are we to do?" she said.

However Richard Merrin, a spokesperson with MCR, said Adams was still running as a company and the business and assets are being offered for sale

The 75-year-old business, which trades under the brand name of Adams, has more than 120 stores in the UK and employs over 2,000 staff.

"We are already seeing significant interest in the business and assets of the Company with a number of interested parties having already come forward," said Paul Clark, a Partner at MCR.

"We are still undergoing a process of determining the viability of the business. The Company is still trading with a view to securing a going concern sale."

In January 2009 the business and assets of Adams Childrenswear Limited was sold to JS Childrenswear Limited, a newly formed company backed by John Shannon, following a period in administration.

Mr Clark said: "Like many retailers, it has experienced a difficult trading environment during the course of the past 12 months which has been exacerbated by a further downturn and general tightening of the credit markets.

"I personally addressed the Head Office staff. There are understandably concerned about their own position. We have also held telephone conference calls with all of the area managers with a view to ensuring that the full support of the shops workforce is continued.

"We fully appreciate the difficult position in which the staff find themselves so soon after Christmas. We are grateful for the assistance that we have received so far.

"The Company is trading as normal at present while all options are considered. This has involved contact being made with the essential suppliers, many of whom have been unpaid for some time. We are now looking at the viability of the business with a view to securing a going concern sale."