Tue, 25 Apr 2023 | ADMINISTRATION
Jack Brodie, a cashmere clothing wholesaler based in Leeds, has been acquired out of administration in a pre-pack deal by fellow West Yorkshire firm Jamm Logistics. The company fell into administration earlier this month after reportedly experiencing significant working capital pressure.
The deal also sees Jamm acquire pima cotton and cashmere products firm The Edinburgh Knitwear Company. Following the acquisition, a Companies House filing revealed that Jamm will be renamed to Jack Brodie’s trading name, Brodie Cashmere.
Jack Brodie and its related companies fell into administration on April 19 2023, with Interpath Advisory managing directors Rick Harrison and Howard Smith appointed as the firm’s joint administrators. Reports have suggested that several of the company’s suppliers were left “heavily” out of pocket following its collapse.
Jack Brodie, which was founded in 2010, primarily supplied the UK and US markets. The company imported cashmere from three factories – two in China and one in Mongolia – and designed all its garments in house, which it then supplied wholesale to independent boutiques.
A statement from the company’s joint administrators said it had “seen significant revenue growth in recent years, prompting management to invest in stock to meet demand.” Despite this, the joint administrators added that “more recently, the companies began to experience significant pressure on working capital and, after assessing all their options […] administrators were appointed.”
Following their appointment, the joint administrators concluded a sale of the business to Jamm Logistics, a Leeds-based private limited company incorporated in August 2021 and now trading as Brodie Cashmere Ltd.
In a separate deal, clothing wholesaler Pennine (London) has been sold to Belgian outdoor clothing firm Amitex. Pennine and Edinburgh Knitwear Company were linked to Jack Brodie through “common directors and shareholders”.
Following the sale, joint administrator Rick Harrison said: “We’re pleased to have concluded these two transactions that will enable these long-established fine knitwear businesses to trade.”
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