Former AllSaints supplier RTS Contracts is suing the young fashion retailer over money owed and a discount disagreement in 2010.
The Scottish firm, which worked for AllSaints as a master contractor, is suing the retailer for £1.15m plus interest and damages for breach of contract. The disagreement relates to discount demanded by AllSaints after warnings that it would collapse unless RTS Contracts and other suppliers agreed to reduce their bills.
AllSaints’ financial difficulty was underlined when chief executive Stephen Craig shared that the company had suffered poor sales over Christmas 2010. A combination of this and new shop openings had led AllSaints to risk breaching lending facilities. RTS alleges that All Saints’ expansion into America cost double the amount originally projected, coming to £43m.
By December 2010, the money AllSaints owed had risen to £9.7m as RTS organised work on stores including Moscow, Berlin and Chicago. According to both the Mail on Sunday and The Sunday Telegraph, papers filed with the High Court show that Craig demanded RTS Contracts cut costs by £2m.
Another firm, Unique Finds, which supplied the antique sewing machines that decorate AllSaints’ windows, also claims it is still owed money dating from 2010, according to The Mail on Sunday.
Evidence suggests that the retailer was at risk of going into administration five months before a £105m deal with private equity houses Lion Capital and Goode Partners was agreed. The situation came to light when former AllSaints fit-out contractor RTS Contracts filed claims with the High Court earlier this month against the young fashion retailer for money owed from 2010.