Marchpole out of fashion as administrators called in

Luxury fashion group Marchpole has entered administrative receivership.

Martin Ellis and Andrew Hosking of Grant Thornton were appointed administrative receivers to the group, which had its shares suspended from the markets on 4 November.

It posted pre tax losses of £5.4m for the year end April 2008, after revenues halved to £44.7m from £90.5m a year earlier.

The drop in revenues was caused by the company not being able to fill the gap from a lost contract with Yves Saint Laurent in 2007.

'Losses have continued into the current period and the Group has severely strained its cash resources,' said Ellis.

The administrators are seeking purchasers of the operating companies as trading businesses.

Marchpole currently employs 130 staff.

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