Mon, 01 Jul 2019 | ADMINISTRATION
With over 400 retail and franchise stores operating across the world, Italian womenswear company Stefanel was put into administration following the collapse of its parent company.
Professional advisory firm CVR Global has been called in to handle the administration process, with partners Richard Toone and David Oprey appointed as joint administrators.
The company’s advisers, retail property consultants GCW, stated that Stefanel’s London stores in Covent Garden and Regent Street will be marketed for lease as a result of the insolvency.
Richard Toone commented: “Unfortunately both of Stefanel’s stores have experienced a downturn in trade to the point where their income is no longer covering rental costs. After reviewing the business’ performance, the prospects of a turnaround were limited, so the decision was taken to wind the business down in the best interests of creditors, one of which is the firm’s parent company Stefanel.
“Both stores will continue to trade as normal while we try to maximise returns for creditors in the form of selling stock as well as recovering rental deposits. We are unable to say at this stage when the stores will close.”
Stefanel was established in 1959, and survived a debt restructuring in 2017, after which point control was taken over by its investors Attestor Capital. However, its relaunch was unsuccessful and the company was forced to seek creditor protection come December that year.
Although the company was instructed to present a restructuring plan to a bankruptcy court by mid-June 2019, it failed to reach an agreement with its creditor banks and Attestor Capital, which held approximately £36 million in debt.
The stores will continue to trade during the administration period to maximise the returns for the company's creditors.
Click here to view the Stefanel (UK) Limited listing for full details.
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