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Mikey falls victim to credit crunch

Accessories and jewellery business Mikey has shut its stores and concessions after going into administration, blaming a tough economic climate for its demise.

Mikey has appointed administrator BDO Stoy Hayward to find a buyer for the business, which has three stores, eight concessions and several wholesale accounts.

Alan Wood, the former New Look director who rescued Mikey from administration in 2006, told Drapers that banks had tightened their lending. “Economic conditions were a big contributor to the downfall of Mikey. It’s been the worst time to raise capital,” he said.

Mikey, which employed 111 staff, has made 106 people redundant and closed its three stores and its concessions in the London Oxford Street branch of Topshop, Selfridges, Harrods, Fenwicks, Bentalls in Kingston upon Thames in Surrey and Clerys in Dublin.

BDO Stoy Hayward said it would seek to sell the brand and its wholesale and etail businesses. Wood added: “The brand has potential to live on.”
Earlier this year Wood put the business up for sale with a £7.5 million price tag, but failed to find a buyer.

According to accounts filed by parent company Amaranth Accessories, Mikey made a loss of £111,217 for the six months to January 31 2007, under Wood.

The accessories market has been hit by high street clothing retailers launching own-brand jewellery and accessories.

Last year Monsoon issued a profit warning partly attributed to increased competition against its Accessorize chain.
Wood also owns accessories supplier business Phase Two with his wife Lisa.

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