MK One, the 125-store discount retailer previously owned by Woolworth’s suitor Hilco, has collapsed for a second time this year.

The high street chain was put into administration by its leading creditor this morning.

The chain, which has struggled to compete with other discount retailers such as Primark, has been in and out of administrations and restructurings for the past 12 months.

Hilco, a turnaround specialist, bought its majority stake in MK One in May from Baugur, the Icelandic retail investor, which is itself now under pressure because of the collapse of Iceland’s banking system.

Hilco appointed Deloitte, the accountancy firm, in May to find a buyer for MK One. However, Deloitte could only sell the chain through a pre-packaged administration, which allowed it to get rid of some of its liabilities.

MK One was sold from administration to its original founder Mark Brafman, who took on 170 stores but moved to close some as MK One struggled to balance its books.

However, Mr Brafman left the chain last month and Bali Singh, the new boss, was seeking funds to enable the business to continue.

But this month, one of the chain’s suppliers, who had not been paid, applied to the court to put MK One into administration.

Deloitte, which continues to act for MK One’s original lenders, who are large residual creditors of the chain, was forced to hire Leonard Curtis, an insolvency accountant, to put MK One into administration to ensure its clients kept control.

Leonard Curtis is now looking for a buyer.

Lee Manning, a Deloitte partner, said: “It is likely that the group will bought by someone who will seek to run it as a much leaner, meaner operation.”

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