RSM Tenon administrators appointed to fashion label Fenchurch
Pricing pressures squeeze margins, plus supply problems, hits Fenchurch's cashflow
Pricing pressures squeeze margins, plus supply problems, hits Fenchurch's cashflow
ADMINISTRATORS from RSM Tenon have been appointed to fashion label Fenchurch.
The company, incorporated in 2005, is a well-known label that sells through more than 900 independent retailers through the UK, Spain, France and Germany.
Fenchurch recently opened four stores in Covent Garden, Cardiff, Bristol and Glasgow together with an online shopping facility.
Delays in production targets from producers in China has, in turn, delayed deliveries to retailers, said administrators. Pressures on profits margins from aggressive pricing in China, and increased cotton prices, have all contributed to cashflow problems at the business.
Gareth Roberts, director at RSM Tenon and joint administrator, said: “We are anticipating a high level of interest from prospective purchasers of the business and assets as it is such a well known brand in the sector. The business has seen positive growth in recent years with a strong presence in both the UK and Western Europe but is in need of additional working capital.”
“We are confident of achieving a sale of the business and assets in the near future so protecting the brand and its staff.”