The management team behind Pink Soda were seeking a last-minute rescue deal for the young fashion brand and high street supply business as Drapers went to press.
Administrator PKF was on standby to take control of the business, which has been hit by the weak sterling and debts believed to amount to about £1 million.
Co-founder and creative director Robert Rose told Drapers: “We are being screwed by the dollar. Everything is 30% more expensive but clients won’t pay more and some indies in Europe aren’t paying at all [for last season’s stock]. Everything is just frozen.”
Pink Soda was founded more than 25 years ago. About 60% of its business comes via private label for chains such as Marks & Spencer and Miss Selfridge. The Pink Soda brand itself has a presence in the likes of Whistles and Urban Outfitters, and has more than 320 stockists globally including 130 in the UK.
Last November, Pink Soda had a change of ownership and management. John Evans, who was previously general manager at outdoor brand Columbia Sportswear Europe, took an equity stake while Rose’s co-founder Davis Solomon and director Steven Baruch resigned.
Evans was unavailable for comment.