Thought Fashion Ltd (06361832): administration
- Status
- Administration ended
- Administration began
- 2023-09-19
- Administrators' firm
- Begbies Traynor
- Formerly
- Braintree Clothing Limited; 3Trees Limited; Braintree Hemp Limited
- Incorporated
- 2007-09-05
- Location
- London
- Industry
- 47910 Retail sale via mail order houses or via Internet
Why it went into administration
- HMRC / tax arrears
- Creditor pressure / legal action
- Weak consumer demand
- Rising costs / inflation
- Sustained trading losses
- Brexit
- Competition / price pressure
From the administrators' statement
The Company was incorporated in September 2007 and trades in the design, manufacture and sale of clothing made from sustainable textiles through a wide network of retailers throughout the UK and Europe. The business also sold directly to consumers via its website wearethought.com and, in recent years, through concessions at stores such as John Lewis and Next. It built a wholesale customer base across the UK and Europe selling to more than 1,000 stores. The ecommerce website sold to more than 45,000 customers in 2019, growing to 88,000 by 2023.
Having started the current business model in 2002, the Company had grown steadily and was profitable every year until the financial year ending 31 January 2022. In the four years prior, the Company had generated
-3average net profits of circa £600,000 and accrued retained earnings of circa £3 million with no external investment or borrowings. The Company had scaled back its plans during the Covid-19 Pandemic and benefited from the growth in website revenue. However, new partnerships in UK and Germany in the postpandemic period failed to generate the anticipated revenues and the Company was left with a significant overstock position.
Administrators' statement of proposals (2023-11-13) · Companies House register