Austin Reed has collapsed into administration, putting almost 1,200 jobs at risk.
The 116-year-old tailoring brand, which once counted Winston Churchill and Elizabeth Taylor among its customers, appointed AlixPartners on Tuesday to explore options for the business after it ran out of cash.
It becomes the second high street retailer in two days to appoint administrators after BHS suffered the same fate on Monday, leaving 11,000 jobs hanging in the balance.
AlixPartners said the retailer would continue to trade while it explored possible options to secure a future for Austin Reed, including a sale of all or parts of the business.
Joint administrator Peter Saville said: “Our priority now is to work with all stakeholders and determine the optimum route forward for the business as we continue to serve customers throughout the UK and Ireland.
“Austin Reed is a well regarded and iconic brand, and therefore we are confident that it is an attractive proposition for a range of potential buyers; as such, we expect, and welcome, contact from interested third parties.”
Better Capital, the private equity firm run by veteran investor Jon Moulton and owner of fashion chain Jaeger, has been suggested as a possible suitor. The company said it did not comment on speculation but Moulton said he was “not disinterested” in the business.
The Austin Reed Group, which includes the Country Casuals brand, has 100 standalone stores and 50 concessions throughout the UK and Ireland. It employs a total of 1,184 staff.
The company has struggled in recent years and closed 31 unprofitable stores in 2015 using a company voluntary agreement.
The administrators said the retailer had cash flow problems resulting from “challenging retail market conditions”.
It moved out of its London flagship at 113 Regent Street in 2011, exchanging it for smaller premises across the road at number 100. However, Austin Reed is now trying to sell that store as well.
Alteri Investors, which invests in troubled retail companies, recently took control of Austin Reed, whose customers include the managing director of the International Monetary Fund, Christine Lagarde.
Alteri bought the retailer’s debt and equity from Darius Capital, a group controlled by the property tycoon Guy Naggar, who was previously involved in the now collapsed investment company Dawnay Day.
Alteri declined to comment on Tuesday but chief executive, Gavin George, said last week: “We decided to acquire the equity and shareholder loans to protect our position as secondary lenders to Austin Reed, behind Wells Fargo, who remain senior lender.”
Jon Copestake, chief retail analyst at Economist Intelligence Unit, said news of Austin Reed’s predicament signalled more pain on Britain’s high streets.
He said: “With British retail still reeling from yesterday’s BHS announcement, the news that Austin Reed will also be going into administration is another hammer blow for the high street.
“This has been an incredibly tough time for profitability among UK retailers and the last year has seen the highest reported number of profit warnings since the economic crisis, when a number of high profile names including Woolworths, went into administration.”
More than 350 UK retail chains have gone into administration since 2007 according to Economist Intelligence Unit, affecting more than a quarter of a million workers.
