High street retailer Austin Reed to close 120 stores
THE high street was dealt another blow yesterday as administrators announced the closure of 120 Austin Reed stores with the loss of about 1,000 jobs.
No viable offers were received for the 116-year-old tailoring business despite a five-week sales process after it went into administration following tough trading conditions.
Outlets are expected to close by the end of this month.
Five Austin Reed concessions in Boundary Mills outlet villages in the North of England, along with the Austin Reed and Country Casuals brands, have been acquired by retailer Edinburgh Woollen Mill.
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Administrator Alix Partners said it had no alternative to a managed wind-down.
The property portfolio is expected to be broken up and sold to retail groups.
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Joint administrator Peter Saville said: “We have explored all options to sell the business since our appointment and continued to trade the business with the support of the secured creditors in what is an extremely challenging retail environment.
“Despite a significant number of interested parties coming forward it became clear that a viable solution which kept the business whole was not forthcoming.
“We have made the difficult decision to cease trading the business and commence a wind-down of the estate. We thank all employees for their support and efforts during this unsettling period and wish them well for the future.”
The retailer was founded in 1900 by Austin Leonard Reed and customers included Sir Winston Churchill and Elizabeth Taylor. But it struggled to adapt to changing trends.
Jamie Merrick at e-commerce software firm Demandware, said: “Store closures are an unfortunate and sad reality for the likes of Austin Reed that have failed to stay relevant and get product offerings right.
“To appeal to the next generation the products need to be pertinent, stock readily available and offerings competitively priced with a unified retail experience instore and online.”
