Nicole Farhi’s unsecured creditors could be set to lose almost £3m in the wake of the brand falling into administration last month.
The luxury label had debts of almost £20m when it went under, including £15.7m the brand owed to its owner Kelso Place Asset Management, according to The Telegraph.
According to the administrators report unsecured creditors stand to lose £2.9m. The company suffered a period of “sustained losses” and needed “significant further funds” to be able to supply its autumn collection, the statement said.
The luxury label collapsed into administration in July but was snapped up by fashion entrepreneur Maxine Hargreaves-Adams later on in the month. According to the administrator’s statement of proposals, the deal was worth £5.4m and beat offers from five other parties.
As part of the deal Hargreaves-Adams, the daughter of Matalan founder John Hargreaves, acquired Nicole Farhi’s London flagship store, three further stand-alone stores, two outlet stores and its head office.