Luxury handbag and accessories brand Radley has been acquired by Gordon Brothers, the investment firm that also owns Poundland and LK Bennett, through a pre-pack administration. The deal, however, puts the future of its two standalone stores and 19 concessions at risk, with 42 job losses confirmed.
The takeover includes Radley's intellectual property but excludes its shops in London's Covent Garden and Glasgow, as well as its concessions. These outlets are expected to trade for approximately 14 weeks to clear stock, according to Drapers. The Mirror has contacted administrators FTI Consulting and Radley for clarification.
Radley, known for its Scottie dog logo, reported a pre-tax loss of £5.5 million in its last financial year, with turnover falling from £72 million to £65.8 million. The company was founded as a stall in London's Camden Market in 1998.
Carolyn D'Angelo, Senior Managing Director 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.'
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.'
