MORE than 300 jobs were saved yesterday when two North-East department stores were bought out of administration.

New venture Vergo Retail Limited has acquired Joplings, of Sunderland, and Robbs, of Hexham, 11 weeks after parent company Owen Owen collapsed.

Liverpool-based Vergo was set up only days ago by Owen Owen's managing director and major shareholder, David Thompson, specifically to buy the businesses as a going concern.

He believes the two stores have strong potential.

Mr Thompson told The Northern Echo: "They are strong local brands and they are good businesses."

Vergo is also in talks over the sale of Owen Owen's flagship store Lewis', in Liverpool, and administrators Kroll said it is close to completing a deal.

Philip Duffy, partner at Kroll's corporate advisory and restructuring group, said the company reviewed a number of offers for Owen Owen.

"This sale represents the best option and preserves the jobs of Owen Owen Ltd employees, totalling 129 in Robbs and 180 in Joplings," he said.

"We remain hopeful of completing the sale of Lewis' as a going concern in the near future. I would again like thank all employees, store concessions and customers for their support during the administration process."

Owen Owen plunged into administration in late February, blaming the situation on "cashflow difficulties".

While both Robbs and Joplings had reported healthy trading, Owen Owen made an operating loss of more than £1.7m in the year to January 31.

Mr Thompson took control of the Liverpool business in 2004, following the sale of an 80 per cent stake by British billionaire and Arcadia Group owner Philip Green and that of another director.

To make the business viable, he then acquired the two North-East stores - Robbs and Joplings - in 2005 from the now defunct Merchant Retail Group Plc for £5m.

Joplings has traded in Sunderland for more than 200 years, while Robbs opened in Hexham in 1819.

Both stores continued to trade while administrators searched for a buyer.