FR Etail Limited (SC294886): administration
- Status
- Administration ended
- Administration began
- 2011-12-19
- Administrators' firm
- Begbies Traynor
- Formerly
- Red Skye Management Limited; Dunwilco (1305) Limited
- Incorporated
- 2005-12-28
- Location
- Edinburgh
- Industry
- 7499
Why it went into administration
- Creditor pressure / legal action
- Weak consumer demand
From the administrators' statement
The companies were incorporated as subsidiaries of Fashion Rocks Group Ltd to commercialise the success of the Fashion Rocks international charity fundraising events which featured fashions by leading designers being showcased to live performances by leading music acts. FR Retail Ltd traded through two major shopping centre locatians — Stratford, London and Meadowhall, Sheffield. FR Etail Ltd traded through the Fashion Rocks website providing internet sales.
The retail stores provided a high quality shopping environment for designer label clothing. Significant investment was made in fitting out the retail units prior to their opening in Q2 and Q3 2011. In addition, substantial working capital was tied up in stock purchases of seasonal ranges based on anticipated sales levels.
Turnover of both retail and internet sales failed to meet anticipated levels. This was a combination of poor footfall figures in retail outlets (particularly Stratford) and lower than anticipated sales value per transaction due to the general economic downtum. The internet sales company suffered from system issues which resulted in an inefficient sales and stock process together with a higher than anticipated retums level which incurred costs. As a result of all factors cashfiow in the companies became problematic with significant creditor pressure.
Administrators' statement of proposals (2012-02-17) · Companies House register