100 year-old fashion retailer faces calling in administrators
MENSWEAR brand Austin Reed has filed a notice of its intent to appoint administrators following years of slumping sales.
The fashion retailer has attempted to modernise with its online offering and bespoke suit tailoring, but has failed to gain momentum, with four consecutive years of declining revenues.
Last year, Austin Reed was forced to sell 31 stores following a company voluntary arrangement. Despite this, the company said at the time there were still “significant loss making stores.”
It employs around 1,000 people across the UK, including at its head office support services branch in Thirsk, North Yorkshire.
Turnover for the year to 31 January 2015 was £44.4m, down on £47.7m the year before. However the company made profits of £2.58m in its most recent full year, up from £1.14m in 2013/4.
It has had clients from The Law Society and Winston Churchill to The Beatles, having opened its first London store on Fenchurch Street in 1900.
Last week Alteri, which specialises in struggling retailers and recently was involved in the sale of shoe retailer Brantano stores, bought out the rest of the business according to the Financial Times.
Earlier this month AlixPartners were called in to look at another CVA, less than a year and a half after their previous arrangement with landlords was completed.
