British handbag brand Radley is set to close all 21 of its stores after collapsing into administration, reportedly owing millions to suppliers. The fashion label, founded in London in 1998 and known for its signature Scottie dog logo, has already cut 42 jobs, with the future of 300 more employees uncertain.
Administration and Acquisition
Radley collapsed in May and was subsequently acquired out of administration by Gordon Brothers, the firm that also owns Poundland. The retail giant took on the Radley brand name and intellectual property assets. A closing-down sale is now available on the brand's website, offering up to 50% off on more than 600 items.
According to FTI Consulting, the administrators handling the deal, Radley's losses come after a “sustained period of challenging economic conditions for the retail environment.” The brand's turnover dropped by £6.2 million in the previous financial year, from £72 million to £65.8 million.
Supplier Debts
Reports from the Express indicate that Radley owes significant sums to former suppliers. One supplier is understood to be owed a six-figure sum for stock and materials such as leather, zips, and buckles.
Store Closures
All 21 branches will close down due to financial strain. The main stores in London’s Covent Garden and Glasgow are expected to remain open until the end of the summer to sell remaining stock. 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.
The Mirror has approached Radley for comment.
