AW Retail Limited (06879213): administration
- Status
- Administration ended
- Administration began
- 2021-05-13
- Administrators' firm
- Evelyn Partners
- Incorporated
- 2009-04-16
- Location
- London
- Industry
- 47710 Retail sale of clothing in specialised stores
Why it went into administration
- COVID-19
- Funding withdrawn / unable to refinance
- Weak consumer demand
From the administrators' statement
Amanda Wakeley the “brand” was launched in 1990 as a high-end luxury womenswear venture which became incorporated as the Company in 2009. It was backed by private equity investment since 2012. The Company transitioned from designer occasion-wear to a lifestyle brand, with a product range including handbags, bridalwear and jewellery. Retail channels included the flagship store in Mayfair, concessions in Harvey Nichlols across the UK, Harrods and an online E-Store. It was also represented in Europe, the Middle East and North America.
The accessories range experienced great demand via a prominent television shopping channel. There was an intended launch for 2021/2022 into the USA, however this was put on hold due to the onset of the COVID-19 pandemic in March 2020. As with many retail businesses, the Company experienced a dramatic reduction in turmover caused by the lack of consumer demand for its merchandise due to the restrictions that the Government put in place.
From September 2020, management, in consultation with their investors, commenced a restructuring programme, whereby the business was streamlined to maximise its E-Store sales and, as a consequence, a number of staff redundancies made. Cost efficiencies were also negotiated in respect of supplier contracts and payment terms. It was decided that new investment would be sought, with a view to selling the business, with the creative director retaining a role. In early 2021, management were advised by its investors that there would be no additional funding, necessary to be able to meet the ongoing liabilities of the business, with cash flow becoming critical within a matter of weeks. Despite the additional support provided by various Government initiatives for businesses, this was insufficient to support continued trading beyond the short-term.
Administrators' statement of proposals (2021-07-20) · Companies House register