Tue, 30 May 2023 | BUSINESS SALE
A Birmingham-based fashion designer and retailer has been acquired out of administration after succumbing to the post-COVID challenges facing the industry. 304 Clothing Limited, which is based at the Kings Norton Business Centre, has been acquired by LID CLO.
The company was founded in 2012 and designed and sold a wide range of streetwear-based clothing for men, women and children. The brand’s clothing was sold via third-party retailers, including Asda and Asos, as well as through its own website.
Last year, the company received £250,000 in funding from MEIF Maven Debt Finance, part of the Midlands Engine Investment Fund (MEIF), which was managed by Maven Capital Partners, with backing from the Recovery Loan Scheme.
304 Clothing said at the time that it would use this funding to support its ongoing expansion plans. However, the company continued to be impacted by the range of challenges facing both the fashion and retail sectors in the wake of COVID-19, with lockdowns and social distancing rules seeing spending on fashionwear fall significantly.
As a result of its problems, the company appointed Julie Humphrey and Glyn Mummery of FRP Advisory as joint administrators on May 11. The joint administrators subsequently secured a sale of the business and its assets to LID CLO.
Joint administrator Glyn Mummery commented: "The retail sector has faced significant challenges since the start of the pandemic with many businesses unable to recover. However, the deal we've secured ensures that trading will continue and all employees will be transferred across to the new owner.”
In 304 Clothing’s most recent accounts, for the year ending December 31 2021, its fixed assets were valued at around £108,000, with current assets standing at close to £540,000. At the time, the company’s net assets amounted to £138,043.
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