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Osman sold to Luxcite in pre-pack deal

Private equity firm Luxcite has bought London designer label Osman as part of a pre-pack administration deal, Drapers has learned.

Osman last week announced that London-based Luxcite had bought a stake in the brand for an undisclosed sum.

It has since emerged that Matthew Tait and Sarah Rayment, partners at accountancy firm BDO, were appointed as joint administrators for Osman on 31 July.

The sale to Luxcite took place on the same day. Suppliers were notified on 2 August.

BDO confirmed it secured the sale of Osman Studio, trading as Osman, to Osman Perfect Five – a special-purpose vehicle owned by Luxcite.

A Companies House filing shows Osman Perfect Five was incorporated on 28 July, three days before Osman Studio went into administration.

A letter sent from BDO to Osman’s suppliers, seen by Drapers, said that creditors’ accounts with Osman have been frozen.

However, BDO stated that there will be ”no disruption to business operations”.

The administrators added that all 15 existing staff members at the label will be transferred to the new business and a new management team from Luxcite will be put in place. 

Founder and creative director Osman Yousefzada will remain in his role.

Its stockists include Browns, Harvey Nichols, Selfridges and Matchesfashion. The label does not publish its turnover figures.

Tait said: “Osman Studio had experienced cashflow difficulties as it restructured its business model, leaving it under-capitalised. With the backing of specialist investors, the sale secures the employment of 15 staff and increases the prospect of a dividend to unsecured creditors.”

A spokesman for BDO added: “The business is gearing up now for deeper wholesale relationships and building a direct-to-consumer strategy, both on- and offline.”

 

 

 

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