Radley, the handbag retailer, has been rescued from administration by Gordon Brothers, the owner of Poundland and LK Bennett, in a deal that puts its stores at risk of closure. The pre-pack administration sale includes the Radley brand, intellectual property, and some assets, but excludes the retailer's 21 UK stores.
Job Losses and Store Closures
Gordon Brothers confirmed that 42 jobs would be lost with immediate effect. The future of the remaining stores remains uncertain, with potential closures looming. The deal comes after Radley appointed administrators from FTI on Tuesday, citing a slump in consumer demand and rising costs.
Background
Radley was founded by Australian designer Lowell Harder in London in the 1980s, starting as a stall in Camden Market. It was acquired by private equity firm Freshstream in 2016, but was reportedly put up for sale earlier this year due to financial pressures.
FTI stated: 'The administration team will guide and support affected team members over the coming weeks through the redundancy claims process. The administration appointments follow 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.'
This is the latest rescue deal for Gordon Brothers, which purchased Poundland for £1 last year and subsequently oversaw significant store closures to drive a turnaround.
