British handbag brand Radley is set to close all 21 of its remaining stores by the end of summer after collapsing into administration, reportedly owing millions of pounds to suppliers. The iconic label, known for its Scottie dog logo, was bought out of administration by Gordon Brothers, the owner of Poundland, in May, but the retail giant only acquired the brand name and intellectual property, not the stores.
Suppliers Left Unpaid
According to Drapers, one former supplier is owed a six-figure sum for stock and materials such as leather, zips, and buckles. Another supplier is reportedly owed tens of thousands of pounds. A source close to the brand told Drapers: “It is so damaging for the long-term partners to the business as Radley treated them really badly [by not paying them]. They [suppliers] don’t deserve that.”
Financial Struggles
In the previous financial year, Radley suffered a pre-tax loss of £5.5 million, with turnover dropping from £72 million to £65.8 million. FTI Consulting, the administrators overseeing the deal, attributed the losses to a “sustained period of challenging economic conditions for the retail environment.”
Store Closures
Radley’s main stores in London’s Covent Garden and Glasgow are expected to remain open until the end of summer to sell remaining stock. Along with 19 concessions and outlets, all 21 retail sites will close. The full list of closing stores includes: Covent Garden, Glasgow, Ashford, Banbridge, Braintree, Bridgend, Cannock, Castleford, Cheshire Oaks, Cotswolds, Dalton Park, Doncaster, Gretna, Gunwharf Quays, Livingston, Mansfield, O2 London, Springfield, Somerset, Swindon, and York.
Impact on High Street
The closures mark another blow to the British high street, which has seen a wave of retail collapses in recent years. Radley has been contacted for comment but has not yet responded.
