Luxury model cuts 42 jobs and closes 21 shops after take care of Poundland bosses
Luxury handbag retailer Radley has been acquired by Gordon Brothers, the owner of Poundland, through a pre-pack administration deal, resulting in 42 job losses and the closure of 21 UK shops
Shops are now facing potential closure(Image: Getty Images/iStockphoto)
Luxury handbag and accessories brand Radley has been acquired by the owner of Poundland – but its shops are now facing potential closure. Investment firm Gordon Brothers, which also owns LK Bennett, has secured Radley through a pre-pack administration, though the deal will result in 42 redundancies.
The acquisition encompasses Radley’s intellectual property assets, but excludes its two UK outlets in Covent Garden, London and Glasgow, Scotland, along with its 19 concessions. Drapers reports that these locations are anticipated to continue trading for approximately 14 weeks while clearing remaining stock.
Radley, which is recognised for its distinctive Scottie dog branding, recorded a pre-tax loss of £5.5million in its most recent financial year.
At the same time, turnover fell from £72million to £65.8million, reports the Mirror. The business began life as a market stall in London’s Camden Market back in 1998.
Carolyn D’Angelo, Senior Managing Director, 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, said: “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.”
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.” In further retail developments, Flying Tiger Copenhagen is on the verge of being acquired in a move that would affect approximately 900 stores worldwide.
Flying Tiger stocks its own collection of Scandi-inspired affordable products, encompassing everything from household items, office supplies and playthings. It operates roughly 80 outlets across the UK and is currently owned by Danske Bank and Nordea.
However, a fresh report from The Times indicates the retailer is poised to be purchased by private equity fund Modella Capital. City insiders informed the publication that an announcement could be made at any moment.
This follows reports that financial consultants were brought in to examine possibilities for Flying Tiger, including a potential sale, earlier this year. In its most recent results, Flying Tiger announced a “record-breaking” 2024 showing with turnover reaching DKK 5.2 billion.
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