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Clothing Suppliers to BHS Entered into Administration with 350 Jobs Lost

Clothing Suppliers to BHS Entered into Administration with 350 Jobs Lost

Reviewed: 26th May 2016

Clothes shopA pair of clothing companies that counted the recently-collapsed British Home Stores (BHS) as an important partner have been entered into administration and are heading out of business.

Courtaulds and CUK Clothing, which merged in 2006 and made clothes for a variety of UK and international retailers, have collectively let go 350 people having been left in an unsustainable financial position over the course of recent months.

The two companies made a variety of popular hosiery and lingerie products under the brand name Pretty Polly, which sold items at BHS outlets as well as in a variety of other high street stores around the UK.

“The administration of BHS has added to the challenge of operating within a fiercely competitive market for seasonal products,” explained one of the administrators appointed to manage the companies’ affairs.

“This has left the directors with little choice but to place the companies into administration.”

Although the job losses at Courtaulds and CUK Clothing come as a bitter blow for those affected, the scale of redundancies at the two companies is dwarfed by the scale of potential job losses at BHS itself.

The high street stalwart employs as many as 11,000 around the UK and its future remains highly uncertain with it having been placed into administration in early April.

There have been stories emerging this month that a potential new buyer for BHS could soon come forward and keep the business afloat but no acquisition deal has yet been agreed and it remains unclear whether any such deal will in fact materialise.

BHS’ collapse into administration came after its owners spent several months trying to resolve the worst of its financial problems and cash flow concerns without success.

Its failure is regarded as being the most significant collapse of a high street retail business since the aftermath of the 2008 Financial Crisis brought down the likes of Woolworths and the entertainment retailer Zavvi.

Last month, shortly after BHS entered administration, it was revealed that the famous British tailoring brand and retail business Austin Reed was also to enter administration, with its collapse putting around 1,200 jobs at risk. We have an extensive network of 55 offices offering confidential director support across the UK.


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