Ellie Louise is latest retail market casualty

WOMEN’S clothing retailer Ellie Louise is the latest High Street retailer to go into administration.

The Yorkshire-headquartered company employs 439 people and has 97 UK stores including seven in the Birmingham area and others in Tamworth, Bilston and Wednesfield. It also had an active online trading arm.

Administrators from restructuring firm Zolfo Cooper said Ellie Louise had suffered “cash flow problems arising from the current challenging fashion retail environment”.

They added that they intended to keep the business trading while looking for the “best possible outcomes”.

Zolfo Cooper said Ellie Louise’s finances woes were “exacerbated” by its 2010 purchase of the Trade Secret brand.

Graham Wild, partner at Zolfo Cooper said: “Unfortunately, as with many other fashion retailers exposed to declining consumer spend, challenging trading conditions have led to increased financial pressure on this well-known brand.

“The company has also been adversely impacted by a number of issues arising from the acquisition of the Trade Secret brand during 2010. This has accentuated the cash flow strains the business has faced and meant that the director had no choice but to seek protection via an administration.

“We intend to trade the business in order to ensure that we identify the best possible outcomes regarding preservation of jobs, the value of the business and returns to creditors.”
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