Administration could prompt sale for fashion retailer East

Wed, 31 Jan 2018 | ADMINISTRATION

Popular fashion retailer East has fallen into administration, with tough trading conditions and rising wages having a harsh impact on the firm’s profit margins.

The bohemian high street brand, which was founded in 1994, maintained 34 stores and 15 concession stands in department stores across the country. East was previously forced to close 15 stores and five concessions in a pre-pack insolvency deal agreed in 2015, in bid to offload loss-making shops and secure the business’s future.

A tough trading environment in the years since then, however, has seen shoppers cut back spending and high street traffic drop dramatically.

East has now appointed administrators at FRP Advisory to guide the business going forward and to evaluate all possible options going forward.

FRP’s business recovery partners, Geoff Rowley and Phil Armstrong, will oversee the administration. Rowley said that East was “the latest high street casualty” following a tough period of trading for many other popular brands.

The administrator added: “The retailer was making progress to expand its footprint, particularly looking at international opportunities. However it has been unable to secure the necessary funding to realise those plans.

“We’re now working closely with all stakeholders to evaluate the options to sell all or parts of the business.”

Womenswear firm East was founded on the Fulham Road, London in 1994 by former Monsoon employees Clive Pettigrew, Penny Oliver and Jonathan Keating. Since 2012, Fabindia – an Indian retail group which exports ethnic products made by craftsman across India – has been the firm’s controlling shareholder.

Earlier this month, accountants Deloitte have warned that the number of retail firms falling into administration has risen by 28 per cent to hit 118 last year, the first increase recorded in five years.

Click here to view East's administration listing with details of the insolvency practitioners.


Share this article



Latest Businesses for Sale

Haulage & Warehousing Services
UK Wide

Utilises a team of experienced drivers to provide tailored logistics solutions, with a focus on home delivery services, whilst also offering complementary warehouse solutions. Serves 20 active clients from a wide range of sectors, including retail, i...

Asking Price: Offers Invited
Turnover: £2,900,000

LEASEHOLD


Automotive Electrical Products & Services
UK Wide

Established for over 50 years.Provides a range of automotive electrical services including air conditioning, heating, tachographs, security systems, vehicle tracking and reversing aids for vehicle, plant and marine industries. Over 100 active clients...

Asking Price: Offers Invited
Turnover: £771,000

FREEHOLD


Freight Forwarding Services
South East, UK

Provides freight forwarding for a range of sectors, as well as warehousing and an array of other complementary services. Serves over 20 clients, with an 80% retention rate.Strong second-tier management team in place. Generates revenue on an internati...

Asking Price: Offers Invited
Turnover: £956,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
11
 
Aug
 

PPL Corp. seeks sale of Western Power Distribution | BUSINESS SALE

PPL Corporation has announced that it has put its UK utility...

 
10
 
Aug
 

Adelie Foods’ Urban Eat brand acquired by Samworth Brothers | BUSINESS SALE

Samworth Brothers has completed the £6.4 million acqui...

 
07
 
Aug
 

Wrexham-based wire firm falls into administration | ADMINISTRATION

Wire manufacturer Wrexham Wire has fallen into administratio...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
10
 
Aug
 

Adelie Foods’ Urban Eat brand acquired by Samworth Brothers | BUSINESS SALE

Samworth Brothers has completed the £6.4 million acqui...

 
20
 
Jul
 

Buyer sought for sports bar chain | ADMINISTRATION

FRP Advisory are seeking a buyer for Rileys Sports Bar, afte...

 
14
 
Jul
 

Huddersfield retail park acquired out of administration | COMMERCIAL PROPERTY

Huddersfield’s Gallagher Retail Park has been acquired...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources