Luxury handbag and accessories brand Radley has been acquired by the owner of Poundland, but the rescue deal will lead to the closure of 21 stores and the loss of 42 jobs.
Takeover Details
Investment firm Gordon Brothers, which also owns LK Bennett, took over Radley through a pre-pack administration. The deal includes the brand's intellectual property assets but excludes its two standalone UK shops in Covent Garden, London, and Glasgow, Scotland, as well as 19 concessions.
According to Drapers, these outlets are expected to continue trading for approximately 14 weeks to clear existing stock. The Mirror has contacted administrators at FTI Consulting and Radley for further clarification.
Financial Struggles
Radley, known for its signature Scottie dog logo, reported a pre-tax loss of £5.5 million in the last financial year. Turnover fell from £72 million to £65.8 million. The company began as a stall in London's Camden Market in 1998.
Statements from Stakeholders
Carolyn D'Angelo, Senior Managing Director and Head of Brand Operations at Gordon Brothers, said: "We are honored to be the brand stewards for this modern British brand and look forward to bringing Radley to a wider consumer audience, with new territories, product categories and retail distribution channels."
Nimit Shah, Managing Director at Gordon Brothers, added: "With our cross-border capabilities and deep experience in investing in and operating retail brands, we are well positioned to unlock value and expand these businesses into new markets while staying true to what makes each brand unique."
FTI Consulting stated: "The administration appointment follows a sustained period of challenging economic conditions for the retail environment, including declining customer demand and increasing operating costs, all of which have had a negative impact on trading."
Other Retail News
In related retail developments, Flying Tiger Copenhagen is nearing a takeover that could affect around 900 stores globally. The Danish retailer, which sells budget-friendly Scandi-style products including homeware, stationery, and toys, has around 80 shops in the UK and is owned by Danske Bank and Nordea.
According to The Times, private equity fund Modella Capital is close to acquiring the chain. City sources indicated that a deal could be announced imminently, following the appointment of financial advisers earlier this year to explore options including a sale.
Flying Tiger reported a "record-breaking" 2024 performance with revenues of DKK 5.2 billion in its latest results.
