Monthly Insolvency Statistics: November 2023

Update 27th MayGordon Brothers confirms the sale in their press release.-----------------According to Sky News Radley, the British handbag and accessories brand, is understood to be close to being sold to Gordon Brothers, the investment firm which also owns Poundland.According to reports, the deal could be completed through a pre-pack administration, with FTI Consulting lined up to act as administrator. The proposed sale is expected to focus on Radley’s brand and intellectual property assets, rather than its existing retail operations.This means that further job losses in the retail sector are likely, although the exact number of affected employees is not yet clear. Retail Stores Expected To Be At Risk The most significant concern is that Radley’s shop estate may not form part of the sale. If the buyer is mainly acquiring the brand, online business and intellectual property, this would leave the company’s physical retail operations exposed.  Currently the brand has 2 main stores in Glasgow and London with an additional 19 "outlet" storesRadley has already taken steps to reduce its store commitments. Recently filed accounts showed that the company paid to surrender leases early on three shops in the United States. The US market accounted for around 15% of group revenue.The company has also been investing in its digital operations in recent years, with a greater focus on an omnichannel retail model. This reflects a wider shift in retail, where brands are increasingly trying to reduce exposure to costly stores while improving online sales and direct-to-consumer channels. Falling Sales And Losses Radley reported a loss of £2.2m for the year to April 2025. Revenue also fell from £72m to £65.8m, underlining the pressure on the business.The brand was put up for sale earlier this year by Freshstream, the private equity firm which has owned Radley for around a decade. A previous strategic review took place last year but did not lead to formal talks with potential buyers. Pre-Pack Administration Likely A pre-pack administration allows a sale of the business or its assets to be arranged before administrators are formally appointed, with the transaction completed shortly afterwards.This can preserve value in the brand and allow parts of the business to continue trading. However, it can also mean that unprofitable stores, leases and other liabilities are left behind in the administration, leading to redundancies and creditor losses.For Radley, the strength of the brand may still be attractive to a buyer, particularly if the business can be reshaped around digital sales, licensing, wholesale and a smaller retail footprint.For employees that remain in a Pre Pack Sale their contracts will continue under the TUPE rules.  But this is a complex area of the law. Another Sign Of Pressure On UK Retail Radley’s difficulties come at a time when many retailers are facing rising costs, weaker consumer confidence, expensive leases and increasing pressure on margins.Fashion and accessories brands have been particularly exposed, with shoppers cutting back on discretionary spending. For businesses with physical stores, the challenge is even greater, as rent, staffing costs, business rates and stock commitments can quickly become unsustainable if sales fall.The expected deal with Gordon Brothers may preserve the Radley name, but it is unlikely to protect all of the existing retail operation. This is another example of a well-known consumer brand being rescued in some form, while shops and jobs remain at risk.

Spaghetti House, one of London’s longest-running family-owned Italian restaurant chains, has entered administration, bringing 70 years of trading to an end.Lavval Restaurants Limited, which traded as Spaghetti House, was placed into administration on 6 May 2026. Asher Miller and Stephen Katz of BTG Begbies Traynor were appointed as joint administrators. The administration notice lists the business as licensed restaurants trading under the Spaghetti House name.All remaining restaurants have now closed with immediate effect. The closures include sites at Marble Arch, Carnaby Street, Oxford Street, Kensington High Street and Cranbourn Street. The original Goodge Street restaurant, where the business began in 1955, had already closed last year.A statement on the Spaghetti House website said:  “We’re sorry all our restaurants are now closed.We would like to express our deepest gratitude to our loyal customers, partners and team members, past and present, for your support over the years.From our family to yours, Grazie.” The business was founded by Simone Lavarini and Lorenzo Fraquelli in 1955, with the first restaurant opening on Goodge Street in Fitzrovia. Over the decades, Spaghetti House became a familiar part of London’s casual dining scene, operating multiple restaurants across the capital.Luigi Lavarini, executive chairman and chief executive of Lavval Restaurants Limited, said the decision had been taken “with a heavy heart” after years of difficult trading conditions. He cited rising costs linked to the pandemic, Brexit, government budgets and wider global instability as factors affecting the hospitality sector.BTG Begbies Traynor said the company had been affected by challenging market conditions, including rising operational, employment, energy and tax costs. The administrators will now oversee the wind down of the company, realise assets, assist former employees with claims and report to creditors in line with their statutory duties.The closure is another example of the pressure facing hospitality businesses, particularly those operating from city-centre sites with high rents, wage costs, energy bills and reduced consumer spending. Even well-established brands with long trading histories can become vulnerable where customer numbers fail to recover sufficiently and fixed costs continue to rise.For Spaghetti House, the administration has resulted in the immediate closure of all restaurants, ending a business that had been part of London’s restaurant landscape for seven decades.