The West Midlands retailer, Clubsport (Kington) Limited, has called in administrators after struggling with poor sales across certain outlets over the last year. The company sold surf, bike and snow sport clothing, under licence from the well-known brand, Animal.
Seven out of twelve stores have had to close, making 47 employees redundant. The remaining five, however, were bought by new company, Clubsport (A New Beginning) and will be staying open, saving 43 jobs.
Graham Randall and Simon Girling from BDO were appointed joint administrators to explore all possible outcomes, however, they felt there was no other option but to close the company’s underperforming stores.
Randall said, ‘We will be assisting affected staff with their redundancy claims and would like to thank them for their forbearance at this time.’
Big brands, like Animal, would likely have had an agreement with Clubsport, known as retention of title. Anything that the company could no longer sell would be claimed back by Animal as they effectively owned it. This ensures stock can’t be sold ‘on the cheap’ or discounted, keeping the brand intact.
While some of the stores were saved, the economic climate and challenging trading conditions have affected yet another retailer. Reviewing the business structure and cutting costs may help the struggle against high business rates and rent. Visit our retail rescue page for advice on what to do next.