BusinessBusiness RecoveryBHS collapse blamed as clothing retailer enters administration

BHS collapse blamed as clothing retailer enters administration

Clothing firm behind Pretty Polly tights blames BHS for its collapse

A clothing business that supplies BHS has entered administration and blamed its collapse on the high street store’s failure.

Courtaulds, the Derbyshire-based company which manufactures Pretty Polly tights, went into administration with the loss of 350 jobs.

Dilip Dattani and Patrick Ellward of RSM Restructuring Advisory have been appointed joint administrators of sister company CUK Clothing – which merged with Courtaulds in 2006 – and Courtaulds Brands Limited.

Both companies manufacture and supply branded and private label clothing to retailers in the UK and abroad. Its products include hosiery, socks, bras, underwear, nightwear, formal and casual wear, jackets and coats. Between them, they employ around 380 staff in Derbyshire and London.

The core reason cited for the demise of both companies has been blamed on the impact of the administration of BHS, a major customer, and the declining volume of sales and profitability over the recent period.

Dilip Dattani, RSM partner, said: ‘The administration of BHS has added to the challenge of operating within a fiercely competitive market for seasonal products. This has left the directors with little choice but to place the companies into administration. Regrettably, we have been forced to make 350 employees redundant to align with the current order book, and we are assisting them with their claims to the Redundancy Payments Service. We are currently engaging with the key customers to assess their ongoing orders and delivery schedules.’

Duff & Phelps are currently look fro a buyer for BHS, which entered adminsatrtion last month, in a bid to save the embattled retailer and the jobs of its 11,000 employees.

A new consortium  led by Greg Tufnell, the former Mothercare and Burton boss, has entered the fray to buy struggling retailer, BHS.

Tufnell, brother of former England cricketer Phil, is reportedly leading the bid by Richess Group, in a battle to beat other hopefuls such as Matalan founder John Hargreaves, Select Retail owner Cafer Mahiroglu.

Other prospective buyers include Edinburgh Woollen Mill and Peacocks clothing retailer owner Philip Day, and Mike Ashley of Sports Direct and owner of Newcastle United Football Club.

Former BHS owner Phillip Green sold BHS to Retail Acquisitions – led by Dominic Chappell, a former bankrupt and racing driver – for £1, when it was saddled with over £1bn in debts and a £571m pension deficit.

 

Related Articles

Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

5m Emma Smith, Managing Editor
Kingston Smith liquidators to distribute millions to Bond International Software PLC members

Accounting Firms Kingston Smith liquidators to distribute millions to Bond International Software PLC members

11m Stephanie Wix, Writer
SFP sells off Pixel Projects and saves all staff

Business Recovery SFP sells off Pixel Projects and saves all staff

12m Stephanie Wix, Writer
Smith & Williamson appointed administrators of 4Children

Accounting Firms Smith & Williamson appointed administrators of 4Children

1y Richard Crump, Writer
Big Four insolvency specialist joins Gibson Hewitt

Business Recovery Big Four insolvency specialist joins Gibson Hewitt

1y Richard Crump, Writer
Administrators from KPMG appointed to City Motor Holdings

Business Recovery Administrators from KPMG appointed to City Motor Holdings

1y Richard Crump, Writer
Johnston Carmichael appointed as joint administrators for Axon Well

Accounting Firms Johnston Carmichael appointed as joint administrators for Axon Well

1y Stephanie Wix, Writer
Begbies Traynor appointed administrators of William Anelay

Accounting Firms Begbies Traynor appointed administrators of William Anelay

1y Richard Crump, Writer