Austin Reed to Be Liquidated After Failure to Find a Buyerby
Closure of 120 stores will lead to about 1,000 job losses
116-year-old formalwear chain entered administration in April
Austin Reed will be liquidated by the end of June after administrator AlixPartners Services UK LLP received no viable offers for the British formalwear retail chain.
Austin Reed, which opened its first outlet on London’s Fenchurch Street in the early 20th century, will be wound down, resulting in the loss of about 1,000 jobs, according to an e-mailed statement from AlixPartners Tuesday. The retailer’s 120 stores are expected to close by the end of June.
“Despite a significant number of interested parties coming forward it became clear as the process progressed that a viable solution which kept the business whole was not forthcoming," Peter Saville, managing director of AlixPartners, said in a statement.
Austin Reed filed for administration, similar to Chapter 11 bankruptcy protection in the U.S., last month due to insurmountable cashflow problems. BHS, another stalwart of British retailing, entered administration in the same week with a buyer yet to be found. The companies are suffering from the rise of online shopping and a slowdown in consumer spending.
The only parts of Austin Reed that have been salvaged are five concessions located in Boundary Mills outlet stores.