East, Popular fashion retailer founded in 1994, has gone into administration due to higher costs on the High Street and rising wages. East is the latest in a growing list of retailers that are struggling with Marks and Spencer just announcing today that they will close 35 stores with the loss of 450 jobs. If you are worried about your job then see our help for employees page
The trendy high street brand had 34 stores and 15 concessions across the country. East has already gone through a pre-pack administration which closed down 15 stores back in 2015.
Geoff Rowley and Phil Armstrong of FRP Advisory have been appointed as the administrators and, will oversee the administration. Rowley said that East was “the latest high street casualty” following a tough period of trading for many other popular brands.
Rowley added that “The retailer was making progress to expand its footprint, particularly looking at international opportunities. However, it has been unable to secure the necessary funding to realise those plans.
“We’re now working closely with all stakeholders to evaluate the options to sell all or parts of the business.”
Womenswear firm East was founded on the Fulham Road, London in 1994 by former Monsoon employees Clive Pettigrew, Penny Oliver and Jonathan Keating. Since 2012, Fabindia – an Indian retail group which exports ethnic products made by craftsman across India – has been the firm’s controlling shareholder.
Earlier this month, accountants Deloitte have warned that the number of retail firms falling into administration has risen by 28 per cent to hit 118 last year, the first increase recorded in five years.
Worried about poor cashflow? Covid-19?, How to pay wages on pay day? For expert advice on a range of issues download our free Ultimate Guide For Worried Directors today. Or just call us on 0800 9700539
Please note that the guide includes updates due to Covid-19 For instance there have been some changes to insolvency legislation that limits creditors actions and relaxes rules regarding wrongful trading. A new 20 day moratorium for distressed businesses has also been introduced.