Italian womenswear brand Stefanel’s UK business has been placed into administration, following the collapse of its parent company.
Richard Toone and David Oprey of advisory firm CVR Global have been appointed as joint administrators. Retail property consultants GCW – Stefanel’s advisers – said the leases on its two London stores in Covent Garden and Regent Street are being marketed.
Toone, partner at CVR Global, said: “Unfortunately both of Stefanel’s stores have experienced a downturn in trade to the point where their income is no longer covering rental costs. After reviewing the business’ performance the prospects of a turnaround were limited, so the decision was taken to wind the business down in the best interests of creditors, one of which is the firm’s parent company Stefanel.
“Both stores will continue to trade as normal while we try to maximise returns for creditors in the form of selling stock as well as recovering rental deposits. We are unable to say at this stage when the stores will close. Our thoughts are with affected members of staff at this difficult time.”
Italian clothing group Stefanel, founded in 1959, applied to go into “extraordinary administration” on 13 June.
In 2017, after a debt restructuring, investment fund Attestor Capital took control of the company through a capital increase that diluted the stake of founder Giuseppe Stefanel to 16%. The relaunch was not successful and Stefanel, which has been without a CEO since July last year, decided in December to seek creditor protection.
It had until mid-June to present a restructuring plan to a bankruptcy court, but could not reach an agreement with the holders of its €40m (£36m) debt, which included creditor banks and Attestor Capital.
The group operates through two different businesses: Stefanel and Interfashion. The first takes care of the Stefanel production and distribution, while Interfashion manages the production and distribution processes of international women’s clothing brand High.
Stefanel has 400 retail and franchise stores worldwide.
Stefanel and CVR Global have been contacted for comment.