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Upmarket tailor Austin Reed to go into administration Upmarket tailor Austin Reed goes into administration
(about 2 hours later)
Clothing retailer Austin Reed is expected to call in administrators on Tuesday morning, putting almost 1,000 jobs at risk. Austin Reed has collapsed into administration, putting more than 1,000 jobs at risk.
The 116-year-old tailoring brand, which once counted Winston Churchill and Elizabeth Taylor among its customers, is expected to appoint Alix Partners as administrators. The 116-year-old tailoring brand, which once counted Winston Churchill and Elizabeth Taylor among its customers, appointed AlixPartners on Tuesday to explore options for the business after it ran out of cash.
It becomes the second high-street retailer in two days to appoint administrators, after BHS suffered the same fate on Monday putting almost 11,000 jobs at risk. It becomes the second high street retailer in two days to appoint administrators after BHS suffered the same fate on Monday, leaving 11,000 jobs hanging in the balance.
Austin Reed has struggled in recent years and closed 31 unprofitable stores in 2015 using a company voluntary agreement. It still has 155 shops. AlixPartners said the retailer would continue to trade while it explored possible options to secure a future for Austin Reed, including a sale of all or parts of the business.
It moved out of its London flagship store at 113 Regent Street in 2011, exchanging it for smaller premises across the road at number 100. However, it is now trying to sell that store as well. Joint administrator Peter Saville said: “Our priority now is to work with all stakeholders and determine the optimum route forward for the business as we continue to serve customers throughout the UK and Ireland.
American hedge fund Alteri Investors, which is backed by Apollo Global Management, recently took control of the retailer, whose customers include the head of the International Monetary Fund, Christine Lagarde. “Austin Reed is a well regarded and iconic brand, and therefore we are confident that it is an attractive proposition for a range of potential buyers; as such, we expect, and welcome, contact from interested third parties.”
Alteri bought Austin Reed’s debt and equity from Darius Capital, a group controlled by property tycoon Guy Naggar, who was previously involved in the now collapsed investment company Dawnay Day. The Austin Reed Group, which includes the Country Casuals brand, has 100 standalone stores and 50 concessions throughout the UK and Ireland. It employs a total of 1,184 staff.
Alteri’s chief executive, Gavin George, said last week: “We decided to acquire the equity and shareholder loans to protect our position as secondary lenders to Austin Reed, behind Wells Fargo who remain senior lender.” The company has struggled in recent years and closed 31 unprofitable stores in 2015 using a company voluntary agreement.
It moved out of its London flagship at 113 Regent Street in 2011, exchanging it for smaller premises across the road at number 100. However, Austin Reed is now trying to sell that store as well.
Alteri Investors, which invests in troubled retail companies, recently took control of Austin Reed, whose customers include the managing director of the International Monetary Fund, Christine Lagarde.
Alteri bought the retailer’s debt and equity from Darius Capital, a group controlled by the property tycoon Guy Naggar, who was previously involved in the now collapsed investment company Dawnay Day.
Alteri’s chief executive, Gavin George, said last week: “We decided to acquire the equity and shareholder loans to protect our position as secondary lenders to Austin Reed, behind Wells Fargo, who remain senior lender.”