Pic: Daily Telegraph
ICSM Business News: collapsed Chinese owner of British Saville Row tailor puts business in peril as administrators scramble to find a buyer (as one famous name circles looking for a bargain)
By Harry Mottram: It was the year the Captain Cook set sail around the world and Spain ceded the Falklands to Britain – and the year British Saville Row tailor Gieves and Hawkes was established.
Since 1771 London tailor have dressed Kings and Princes, Officers and Admirals but today that long heritage is sin doubt. The owners are Chinese outfit Shandong Ruyi Technology Group collapsed prompting the Trinity Group who control the retailer to call in administrators FTI Consulting and R&H Services Limited to assess the financial position and possible restructuring of the group earlier this year.
Since then the tailor has been trading under administration and has looked for a buyer. The retail trade press is alive with reports that Mike Ashley’s Frasers group is considering a bid for the historic gents’ outfitters. Frasers have been on a buying spree taking a 28.7% stake in MySale, a 26% stake in Hugo Boss and acquiring Missguided in July.
Ian Carrotte of ICSM said it was a troubling time for traditional retailers as shopping habits have changed with the advent of the internet. More people are shopping online while new stores have sprung up that don’t have a presence on the High Street and can thus operated at lower cost. He said people still like a personal service and there will always be a place for stores like Gieves and Hawkes but they were often held back by debt or owners who themselves are burdened by debt.
His main concern was for the suppliers who would likely to have had their invoices frozen when the business went into administration this summer. “At the first sign of trouble such as invoices not being paid on time – put them on stop,” he advised. “No business is worth working for and supplying if you don’t get paid.”
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk