United Kingdom : UK fashion chain Nicole Farhi slips into administration

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UK fashion chain Nicole Farhi slips into administration

04
Jul '13

Nicole Farhi, one of the leading fashion chains of Britain, has slipped into administration, putting over 100 jobs at stake.

Feeling disabled to handle financial pressures arising out of waning demand, contracting margins and rising costs, the fashion chain has called in advisory and restructuring firm Zolfo Copper to serve as administrator for NF Fashion Limited and NF Acquisitions Limited, which jointly trade as Nicole Farhi, BBC News reported.

The fashion chain, which sells clothing for men and women as well as home furnishings, and a usual name at London Fashion Week, operates five standalone outlets and also sells its clothing in department outlets House of Fraser, Harvey Nichols, and Selfridges across the UK. It employs a staff of 75 across its retail network, and another 44 people at its London-based headquarter.

Noting that several parties have shown interest in taking over the business, the administrators have said that they would soon find a new buyer for the firm and would continue trading the label till then.

Incorporated by French-born designer Nicole Farhi and former head of French Connection Stephen Marks in 1982, the company has witnessed frequent changes in ownerships over the past three years.

After incurring heavy losses, French Connection sold the company to OpenGate Capital for £5 million. However, within a short span of two years OpenGate resold it to private equity group Kelso Place Management, which promised to invest about £15 million in the company over a five-year period.

According to the last records available, the company’s revenues totalled £11.75 million in 2011, however its operational losses then reached £ 2.33 million.

Fibre2fashion News Desk - India

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