An investor has been found to save the Henri Lloyd brand and some of its stores, administrators have announced
Plans have been announced to save the sailing clothing brand Henri Lloyd, after it was put into administration on Friday 8 June. Five stores, some stock and other assets have been acquired by Swedish investment group Aligro Group, which already owned the rights to the brand and its trademarks.
So far, the news means that stores in Salcombe, Dartmouth, Cowes, Cheshire Oaks and Lymington will continue to trade, securing the jobs of 38 store staff and six head office employees. 128 other staff in the Henri-Lloyd headquarters in Manchester, in 20 House of Fraser concessions and in four closed stores in Falmouth, Truro, Street and Swindon have, however, all been made redundant.
RSM Restructuring Advisory were appointed administrators of Henri-Lloyd Limited on 8 June after the company was forced to enter administration as a result of ‘challenging trading conditions on the high street.’
In a statement, Chris Ratten, RSM Restructuring Advisory partner and one of the Joint Administrators said: ‘We are pleased to have secured the sale of certain stores and assets to Aligro UK Limited. This sale represents the best outcome for creditors, it maintains Henri-Lloyd’s presence in key locations and secures 44 jobs. Selling the whole business as a going concern was not a viable option and regrettably a number of staff have been made redundant as a result. We will be supporting them to make their claims to the Redundancy Payments Office.’
The statement continued: ‘It was with great regret that Henri Lloyd was put into administration last Friday. The company had experienced difficulties and sought additional financial backing for some time. A Swedish investor, the Aligro Group, recently came on board as lenders but could unfortunately not remedy the difficult financial situation. Aligro, that already own the rights to the brand and trademarks, now also have closed a transaction with Henri Lloyd’s administrator to obtain five stores, certain stock and other assets as a stepping stone to reviving the classic British fashion label. ’
Hans Eckerström, founder and manager of the Aligro Group, said, ‘I am a passionate sailor and Henri Lloyd is a brand that always have had a special place in my heart. Now that we get the opportunity, I’m committed to carry the heritage of the brand further and upgrade it to reach its full potential.
‘This acquisition maintains Henri Lloyd’s presence in key locations and creates a great base for taking this iconic brand to new heights. I have great hope that we can come back shortly with more positive information to customers, partners and Henri Lloyd fans around the world and present a plan for the future.’
The statement from Aligro Group continued:
‘In recent years Henri Lloyd has fought against challenging trading conditions on the high street. Great endeavours to secure the company’s future have been underway, including efforts to reduce cost, refinance the business and divest assets.
‘In March 2018 Aligro Group agreed to acquire the Henri Lloyd brand and trademarks, with significant financial commitments to revitalize the brand. Aligro formed a new brand team headed by Magnus Liljeblad with vast experience from retail and fashion, complemented by specialists within global expansion, product design and e-commerce. The first step was to act as lenders to meet urgent financial needs and continue operations. Unfortunately, the situation continued to worsen, and filing for administration became inevitable.’
RSM Restructuring Advisory was appointed adminstrators for sailing clothing and fashion brand Henri Lloyd on Friday afternoon, 8 June. Shops ceased trading over the weekend, before today’s announcement that five stores remain open.
In a statement on Friday, the company said: ‘Chris Ratten and Jeremy Woodside of RSM Restructuring Advisory LLP have been appointed joint administrators of Henri Lloyd Limited and Henri Lloyd International Limited on June 8, 2018.
‘The decision to appoint administrators was made due to challenging trading conditions on the high street. It’s early days but we are talking to potential interested parties and working with our professional advisors to review the status of the business with a view to maximising the returns to creditors.’