Luxury handbag and accessories brand Radley has been saved after a rescue deal by the owner of Poundland, but 21 stores will still close, resulting in the loss of 42 jobs. The investment firm Gordon Brothers, which also owns LK Bennett, has taken over the business, securing its intellectual property assets. However, the deal does not include its two UK shops in Covent Garden, London, and Glasgow, Scotland, or its 19 concessions.
Stock Clearance Expected
Reports suggest it is expected to take 14 weeks to clear stock. 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."
Challenging Economic Conditions
In a statement, FTI Consulting said: "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."
This news comes after the confirmation that Flying Tiger Copenhagen has been saved due to a rescue deal by Modella Capital, which also owns TG Jones (WH Smith). The chain, which has a location at the Bullring in Birmingham, operates 80 stores across the UK and approximately 900 worldwide.
Flying Tiger Copenhagen Rescue
Joseph Price, the managing director of Modella, said: "Flying Tiger Copenhagen is a hugely exciting opportunity for Modella Capital. With its strong retail brand and a unique product offering that has built a loyal customer base across more than 40 countries, Flying Tiger Copenhagen is a business with tremendous potential. We are pleased to be investing in its future, and we look forward to working closely with the management team to provide the stability, capital and retail expertise the business needs to fulfil its growth plan."
John Dueholm, the chair of Flying Tiger Copenhagen, added: "Flying Tiger Copenhagen has made strong progress in recent years. Throughout the process, we have been focused on finding the right long-term owner for the business, and we believe Modella Capital is very well placed as the new majority shareholder to support the company's continued development."
