BHS suppliers CUK Clothing and Courtaulds Brands have collapsed into administration, resulting in the loss of 350 jobs.
The two companies - which make hosiery, socks, bras, underwear, nightwear, formalwear, casualwear, jackets and coats - blamed the demise of their “major” client BHS, which appointed administrators last month. They also cited declining sales and profitability.
Dilip Dattani and Patrick Ellward of RSM Restructuring Advisory were appointed joint administrators today (May 25). They said 350 of the firm’s 380-strong workforce in Derbyshire and London have been made redundant.
Dattani said: “The administration of BHS has added to the challenge of operating within a fiercely competitive market for seasonal products. This has left the directors with little choice but to place the companies into administration.
“Regrettably, we have been forced to make 350 employees redundant to align with the current order book, and we are assisting them with their claims to the redundancy payments service. We are currently engaging with the key customers to assess their ongoing orders and delivery schedules.”
CUK Clothing and Courtaulds Brands are wholly owned subsidiaries of Kadima Holdings.
As revealed by Drapers in May 2015 Courtaulds underwent a “restructuring programme” after Marks & Spencer, another of its biggest customers, made the decision to move more production direct to factories.
Earlier this week high street suppliers told Drapers they were being squeezed by multiples seeking to recoup lost sales following unseasonable weather.