Radley handbags brand faces store closures after rescue deal
Radley, known for its handbags, has been bought in a pre-pack administration deal by investment firm Gordon Brothers, which also owns luxury brand LK Bennett.
The sale, however, does not include the retailer’s 21 stores across the UK and will result in 42 immediate job losses.
FTI said: "The administration team will guide and support affected team members over the coming weeks through the redundancy claims process.
"The administration appointments follow a sustained period of challenging economic conditions for the retail environment, including declining customer demand and increasing operating costs, all of which have had a negative impact on trading."
Radley was founded in the 1980s by Australian designer Lowell Harder, beginning as a stall in Camden Market.
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The company fell into administration after a period of rising costs and weak consumer demand.
It had been owned by private equity firm Freshstream since 2016 and was reportedly put up for sale earlier this year amid mounting financial pressures.
Gordon Brothers’ acquisition does not include Radley's retail operations, however it does cover the brand, intellectual property, and some assets.
Gordon Brothers previously purchased Poundland for £1 and has since led a turnaround of the discount retailer, which involved major store closures.
It is not yet clear what the future holds for Radley's remaining stores or whether further closures are likely.
