Ozwald Boateng, the Savile Row designer, has seen his company's pre-tax profits plummet by 88% to £37,137 for the year ending April 2012, down from £333,722 the previous year. Turnover also fell from £2.87 million to £2.62 million during the same period.
The financial downturn comes as Boateng's company faces a winding-up petition from HM Revenue and Customs (HMRC) over unpaid taxes, according to reports. The designer is currently in the process of relaunching his business with plans to expand globally.
Jalil Rahman, a former Burberry and London 2012 brand specialist, joined as head of commercial last year to spearhead the expansion. A new website was launched last month, and the company plans to sell and ship products worldwide, including to China and the Far East.
Rahman expressed optimism about the brand's future, stating, "We are on the cusp of an internationally significant expansion." He added, "While I was at Burberry it was about Britishness, London 2012 was about humanity, and now at Ozwald Boateng it is about masculinity. There is so much opportunity for the brand."
The company raised cash and bank debt to finance the expansion in late 2011. Despite the current financial challenges, Boateng aims to open stores in major cities globally and build a global fashion empire.
