Fashion Fail! Nicole Farhi Enters Administration
Written by: Keith Tully
Reviewed: Friday 5th July, 2013
Another British business bites the dust with news that fashion chain Nicole Farhi has gone into administration.
The upmarket retailer, which was founded by the iconic designer of whom it was named after, has collapsed putting more than 100 UK jobs at risk.
Nicole Farhi, who has a CBE, started the label 30-years-ago as a sister company to French Connection. The brand sells clothing to various department stores across the UK including Harvey Nichols, Selfridges and House of Fraser, as well as having five standalone stores.
However, it seems that the economic climate has had a damaging impact on sales and the fashion and homeware firm has now entered administration. It has been reported that trading will continue whilst talks are held about its future and the website remains live.
Peter Saville, a partner at Zolfo Cooper, which has been appointed as administrators, said: “Nicole Farhi is a very powerful retail brand. Unfortunately, as with many other fashion retailers, the decline in high street spend coupled with rising costs has led to increased financial pressures on the business.
“We are already in discussions with a number of interested parties who value the strength of the Nicole Farhi brand.”
Over the past three years, the retailer has had two different owners and at one point, it ran food outlets in New York and London.
According to Zolfo Cooper, all customers with gift vouchers can still exchange them for goods but all returns should be made as soon as possible. Cash refunds however, will not be given.
The business is the fifth retailer in two weeks to flop after Internacionale, ModelZone, Ark and Dwell all went into administration. It is the latest casualty in a long line of high street chains struggling to stay afloat.
If your business needs rescuing, call in the specialists today and speak to one of the reputable advisors at Real Business Rescue. Whether you are looking to liquidate your company, mend tax problems or simply need to improve cash flow, we can help.
For free, confidential advice please call 0800 644 6080 or alternatively, fill in the quick enquiry form and we’ll get in touch.
Author
Keith Tully
Partner
Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.
