Luxury accessories brand Radley has been acquired by the parent company of Poundland, leading to potential closures of its stores. Gordon Brothers, the investment firm that also owns LK Bennett, has taken control of Radley through a pre-pack administration, resulting in the loss of 42 jobs.
The acquisition includes Radley’s intellectual property assets, excluding its two UK stores in Covent Garden, London, and Glasgow, as well as its 19 concessions. These outlets are expected to operate for approximately 14 weeks to clear existing stock. Administrators at FTI Consulting and Radley have been contacted for further details.
Radley, famous for its Scottie dog branding, experienced a pre-tax loss of £5.5 million in the previous financial year, with turnover decreasing from £72 million to £65.8 million. The company was established as a market stall in London’s Camden Market in 1998.
Carolyn D’Angelo, Senior Managing Director at Gordon Brothers, expressed enthusiasm for overseeing the brand, aiming to expand Radley’s reach to a broader consumer base across various territories and product categories. Nimit Shah, Managing Director at Gordon Brothers, highlighted the company’s expertise in enhancing retail brands and venturing into new markets while preserving the unique identity of each brand.
FTI Consulting mentioned that the administration decision was influenced by challenging economic conditions in the retail sector, marked by diminishing customer demand and escalating operational costs affecting trading performance.
In a related development, Flying Tiger Copenhagen faces a potential acquisition that could impact its global network of around 900 stores. The retailer, known for its affordable Scandinavian-style merchandise ranging from homeware to toys, operates about 80 stores in the UK and is currently owned by Danske Bank and Nordea.
Reports from The Times suggest that private equity fund Modella Capital is close to acquiring Flying Tiger, following the appointment of financial advisers earlier this year to explore strategic options, including a sale. Flying Tiger reported a successful 2024 performance with revenues reaching DKK 5.2 billion in its latest financial results.
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