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

Printed polo from Rinku, Spring 2009

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.

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.

However, Bay Trading is still cutting 1,230 jobs, or almost 70 percent of its workforce, administrators tasked with the group's survival announced on Tuesday 19 May.

"We are pleased that we have been able to secure Bay Trading's future with the successful sale of 45 stores and 85 concessions, securing 566 jobs," said Lee Manning, joint administrator for Deloitte.

"Unfortunately this means that the remaining employees will be made redundant as the other stores and concessions are closed and returned to landlords."(Reporting by Tom Freke; Editing by Hans Peters)