Austin Reed to shut down at the end of June as no buyers come forward » SMEInsider

Austin Reed to shut down at the end of June as no buyers come forward

Fashion retailer Austin Reed is to close all of its stores by the end of June after administrators were unable to find a buyer for the entire business.

Administrator AlixPartners said it would wind down the estate with all stores anticipated to close by the end of June, affecting around 1,000 staff in 120 locations.

Peter Saville, Kevin Coates and Catherine Williamson of AlixPartners were appointed joint administrators over Austin Reed in April after the 116-year old menswear chain collapsed days after BHS entered administration.

“Despite a significant number of interested parties coming forward during this period it became clear as the process progressed that a viable solution which kept the business whole was not forthcoming,” said Saville.

“As a result we have made the difficult decision to cease trading the business and commence a wind-down of the estate.”

Five of the concessions located in Boundary Mills outlets have been sold to AR Operations Limited. The sale of these concessions resulted in the transfer of 28 staff to the buyers. In addition, the Austin Reed and Country Casuals brands were sold to Border IP Limited.

High Street stalwart BHS also announced that it was to enter administration this week after administrators Duff & Phelps failed to find a suitable buyer.

First published on sister publication Accountancy Age 

  • The meltdown and Domino effect has begun with a vengeance, and still Cameron lies that we woulld be better off remaining in the EU. Remaining in Europe is OK but the EU is more poisonous than all the venomous snakes in the world gathered in a single snakepit.

    Sir Philip Green is a world class retailer who merely was one of the first to see that the damage created by EU Trade policies would have a terminal effect on Retailing in Britain. BHS historically performed well under his leadership until the European Trade Policies cut into Consumer spending. As a man with the finger on the Button, Sir Philip had many articles written about his merchandising skills.

    All credit to his protective actions for his family – sell out and liquidate as many shares as possible in retailing.

    BHS is just the first of the megastores to fail. The Domino effect now comes into play. It is a disaster & the politicians continue to fiddle like Nero.

    British consumer spending has all but dried up – ALL because of the EUs inane Trade policies that have destroyed entire industries, lost millions of jobs and more importantly left the key youth generation without careers or income.

    The youth generation are the biggest spenders on the high street, and the retail revenues have dried up.

    Goodbye Britain, the Nation of shopkeepers. I wish it was goodbye Cameron and the entire incapable nonentities in the Labour party.

    I am particularly sad about the demise of Austin Reed.

    The inept EU leadership is responsible and should face trial – preferably in Nuremburg

    • Richard John Francis

      I’m no fan of the E.U parliament – believe me. However – before anyone lards too much praise on Philip Green – he is by no means blameless in this. Arcadia has been the subject of a great deal of fiscal scrutiny and also violating anti-sweatshop guidelines. Most of all however – it is the group’s woeful recent under-investment in it’s stores that has raised the most criticism for the failure of BHS. Even Mary Portas – a recognised retail expert – laid the blame for the failure at Green’s feet. Also – if you look at his fiscal manoeuvres – they go a bit beyond “protective actions”. It was downright profiteering at maximum throttle and zero concern for loyal staff at street level.

      • Sound criticism – But no-one remembers the good at this time.

      • brianm101

        and don’t forget the sheer incompetence by the Pension regulator who refused permission for Green to put in £500 million into the BHS pension fund. Yet she still keeps her job why?

    • brianm101

      Despite being a non-lover of the EU (or least in the way its run), the EU can’t really be blamed for bad business decisions/investment. BHS as it stood was just a business waiting to expire, a dinosaur that hasn’t changed.

      • Completely disagree. During Philip Greens management, he was a master of merchandising and had a level of retail skills that made his companies a success.

        • brianm101

          So you are saying that the riser of other retailers, such as amazon, etc., has had no impact? Really!

          Also never said Green was bad at business, quite the opposite he saw the writing on the wall for companies such as BHS etc. EU has nothing to do with BHS failure.

          • The youth spend is a fraction of what it should be. That is entirely due to EUs Trade policies.

            This is the Prime reason why Britain must exit the EU and SAVE Europe by destroying the EU.

          • brianm101

            Oh yeah, youth culture is really into BHS wear! Great logic…
            Wanting to leave the Eu is not the same as wanting to destroy the EU – that just plain silly!

          • Certainly nothing silly about getting rid of all the totalitarian pigs who have destroyed Europe