Womenswear brand Olsen has moved to reassure stockists that deliveries will be unaffected by it filing forinsolvency after a potential investor walked away at the 11th hour.
A statement issued by the German womenswear business described the investor’s U-turn, two days before a contract was due to be signed, as a “surprising withdrawal”. Olsen also blamed a “complex company structure”
As a result of the withdrawal the brand has called in administrator Stefan Denkhaus to manage the insolvency process.
The business, whose head office is in Hamburg, said all foreign subsidiaries, including its UK arm, were unaffected by the move. Deliveries of the autumn 13 and spring 14 collections are scheduled to take place as expected to its 350 UK and Republic of Ireland stockists.
Olsen is continuing to operate and all staffing costs have been secured. It is now looking for a fresh investor and a spokeswoman told Drapers Olsen was in the process of considering proposals from “many” potential sources.
Olsen’s UK business has struggled in recent years, however. It posted a £611,500 loss for 2010 on the back of £9.5m turnover. For the 2011 calendar year, its most recent financial reporting period, Olsen UK made a £2.15m loss on the back of £7.3m turnover.
According to Olsen’s statement, the combined international businesses recorded sales of €89m (£76m) for 2012. No profit or loss has been made public.
The statement added that the brand was reorganised and repositioned in the past two years and that sales so far this year “are positive”.