Fashion News | Fashion Victims of COVID-19
Fashion brands in administration due to Covid.
COVID has effected pretty much every industry, every business and every employed and self-employed person around the world. From furloughs to withheld budgets, we’ve never before seen a situation like this. And some businesses have simply not been able to cope and survive.
Sadly, many brands in the fashion world have had to close their doors since the start of lockdown. And although the high street was already suffering prior to COVID-19, it’s undeniably been the nail in the coffin for the majority of these names.
Here, I’m taking a brief look at some of the latest businesses that have gone into administration (and some of them back again) due to Corona.
Lulu Guinness
In May this year, Lulu Guinness filed for bankruptcy protection and shareholders, including Lulu Guinness herself, stepped in to provide temporary support. WWD reported the namesake of the brand decided to rebuy assets to avoid falling into administration at the hands of Covid.
Prior to this, the brand has been expecting to receive a year’s worth of investment, which quickly fell through as the impact of Covid-19 continued to spread across the industry.
Following the temporary administration in May and rescue from the shareholders, the brand will focus on a growth strategy with Asia as a key market. Hopefully managing to rewind and return from what was potentially the death of the brand.
DVF Studio UK
After facing unsustainable losses due to the impact of Covid, the UK arm of Diane von Furstenberg went into administration at the end of May this year.
The brand had been suffering for several years with declining sales but with lockdown in place, there was simply no way for the UK business to survive. The closure means the end of the Mayfair London flagship store while the brand puts a focus on the .com and New York City store as it tries to negotiate fashion’s uncertain future.
Victoria Secret UK
Victoria Secret has been struggling for a while. With a new generation of body positive and inclusive-minded shoppers, the brand was simply outdated and underrated by today’s savvy underwear consumers.
This month, the UK sector of the brand fell into administration. A new article in the Retail Gazette claims that the company owed over £466 million to 200 creditors. With 800 jobs currently at risk with the administration, Deloitte is helping to seek a new buyer for the brand. Next is currently the top name on the list of potential buyers although the deal is yet to be signed.
Debenhams
Reports about Debenhams and administration started as early as April this year. The BBC claimed the filing was coming as a ‘light touch’ motion to avoid legal action from creditors while the shop was shut during UK lockdown.
In August, the Financial Times reported that the search for investors into Debenhams was still ongoing. While the administration in April was true, the business continued to trade online and as of now, its reopened stores are still trading ‘strongly’.
Monsoon Accessorize
June brought with it the news that Monsoon Accessorize was the one of the latest fashion brands to fall into administration due to the impact of Covid.
With 35 stores closed, SKY News reported that the company could be bought of insolvency by an investment from the founder of £15 million. Hoping to protect nearly 2500 jobs, the plan is to save as many stores as possible.
The UK is only one country seeing administration and closures within the fashion world. In the US, J.Crew, Neiman Marcus, JC Penney and True Religion are just some of the names hitting the headlines because of bankruptcy and insolvency.
Last month we took a look at Vogue Business’ Insight Report on the effect of Covid on the luxury industry. Take a quick look for a breakdown of the key points.
For a slice of something positive, see our article on some of the ways the fashion industry came together during the start of Covid from back in April!
In the meantime, I’ll continue to report on the biggest news in the fashion world while topping you up with the best copywriting and content marketing tips and advice I can!
Until then…
