Manchester fashion agent Blustocking has filed for insolvency, drafting in corporate recovery specialists to deal with its creditors.
Blustocking distributes women’s young fashion brands Lipsy and Little Mistress, and since July 2012 has wholesaled womenswear brand Darling and its “dressier and edgier” sister label Beloved.
But on December 17 - a week before Christmas - Blustocking registered as insolvent. It is understood the company will go into liquidation this week.
Darren Terence Brookes and Gary Corbett of corporate recovery specialist Milner Boardman & Partners are acting as insolvency practitioners for the fashion agent.
A source close to the situation told Drapers: “It was a shock because we really believed in them.”
Blustocking’s most recent accounts, filed at Companies House in January 2012, show the amount owed to creditors had increased to £159,353 for the year to June 30, 2011, from £104,382 the year before. In the same period its net assets dropped from £17,025 to £10,600.
A meeting for creditors is taking place in Cheshire today (January 10).
Blustocking could not be reached for comment. Milner Boardman & Partners also did not respond to requests for comment.