Paul Costelloe womenswear has been rescued from administration by Cesar Araujo the owner and chief executive of Portuguese supply group Calvelex, which had links to the London Fashion Week label’s previous licensee.
Paul Costelloe’s womenswear collection was licensed to supply group Signature Brands International [SBI] before the group hit the buffers last month.
According to documents filed at Companies House the supplier was the majority shareholder in SBI prior to its collapse.
Araujo has set up a new UK company called Couture Brands which will operate the Paul Costelloe womenswear licence. It is understood that the business has also rescued the Four Seasons outerwear brand from the administrators.
It is unclear what Couture Brands intends to do with the brands and whether it will continue to run the department store concession business.
The Dannimac brand remains part of the SBI administration process, which is being run by administrators Ernst & Young.
However a spokesman for Ernst &Young said: “The Paul Costelloe licence agreement with Signature Brands terminated following the appointment of administrators.”
“The administrators were unable to sell the business as a going concern and are in the process of negotiating a sale of the company’s assets. Dannimac is intended to be part of this sale.”
Paul Costelloe will open London Fashion Week in its traditional catwalk slot of 9am on Friday.
SBI supplied the likes of House of Fraser and John Lewis with its collections. It wholesaled its brands, which also included Rainman, Cloud Nine, Telemac, Aquarury, Thomas Marshall and Wetherall, and ran concessions.
Paul Costelloe, who still designs his eponymous collection, is believed to have retained the overall rights to his name when the licence deal with SBI was signed in 2000.