York-based independent Coggles has entered administration, after talks to secure investment fell through.
The business, which had received a £3m boost to cash from Pentland in 2011, has appointed Begbies Traynor as administrator.
The indie had been seeking a second round of investment worth £4m to aid further growth, however the investment talks recently broke down, leading to its collapse.
In a statement the retailer said the weak economic climate had made trading “the most difficult the business has experienced since being founded in 1974”.
It added that targets had not been met, causing increased losses and a tighter cash flow than expected despite like-for-like sales growth.
Chief executive and creative director Mark Bage said: “Hopefully, Begbies Traynor will be able to find a way for the business to continue to trade through a restructure or sale. The last two quarters have been the toughest I’ve seen in the industry. This is the third recession that I have been through but this recession has hit our sector the hardest, which has effectively been a triple dip recession.”
He added: “We have over 60 staff at Coggles and I am proud that some of our highly trained staff, have over the years, gone on to senior positions at Harvey Nichols, Harrods, Asos, Ralph Lauren, Topman, G-Star, Paul Smith, Amazon, Linkedin, Oki-Ni, LNCC and Vogue to name a few. We will obviously be helping our current staff as much as possible over the next few weeks.”
Bage said that sales at the business grew by 105% following its initial investment and the business strengthened its team with marketing, buying and finance appointments.
The next round of funding was scheduled for later this year but due to a poor performance pre-Christmas the investment was needed sooner.