Austin Reeds, the clothier, has decided to sell off 120 stores to other retailers, as reported by “Yorkshire Post” on May 31, 2016. The 116-year-old chain was founded as a tailoring business in 1900. The decision will displace 1,000 workers.
Peter Saville of AlixPartners stated, “We continued running the [company] with the support of the secured creditors in an extremely challenging retail environment.” He added that AlixPartners made a difficult decision to stop doing business and wind down the estate.
After failing to find a buyer for its entire business, the decision was made to sell the stores. Even though Edinburgh Woollen Mill had already acquired the apparel retailer’s brand and five stores, they decided not to purchase the balance of the business. Saville confirmed there were a number of interested parties, however, no viable offers for the rest of the company could be found.
Austin Reed, which has its northern headquarters and a warehouse in Thirsk, North Yorkshire, enlisted AlixPartners in April 2016, after its owner, Alteri Investors, decided to cease operating the company. Retail experts indicated that the firm found itself unable to adapt to a modern marketing environment.
Written by Bashar Saajid
Edited by Cathy Milne
The Yorkshire Post: 1,000 Jobs losses confirmed as Austin Reeds Closes 120 Stores
Image Courtesy of Allwyn Ladell’s Flickr Page – Creative Commons License