Fears for Radley’s sole Welsh store despite rescue from administration

Henry Saker-Clark, Press Association Deputy Business Editor

Radley has been bought out of administration from the owners of Poundland in a deal which leaves the retailer’s shops at risk of closure.

Gordon Brothers, which also owns LK Bennett, purchased the Radley brand, intellectual property and some assets in a pre-pack administration deal.

However, the takeover does not include Radley’s retail operations, which include 21 stores across the UK – with one in Wales at Bridgend’s McArthurGlen Designer Outlet.

It confirmed that 42 jobs would also be lost “with immediate effect”, as a result.

It came after Radley hired administrators from FTI on Tuesday after being hit by a slump in consumer demand and higher costs.

Handbag specialist Radley was founded by Australian designer Lowell Harder in London in the 1980s, starting from a stall in Camden Market.

Previous owner Freshstream, a private equity company, purchased the business in 2016 but reportedly put it up for sale earlier this year amid pressure on its finances.

In a statement, FTI said: “The administration team will guide and support affected team members over the coming weeks through the redundancy claims process.

“The administration appointments follow a sustained period of challenging economic conditions for the retail environment, including declining customer demand and increasing operating costs, all of which have had a negative impact on trading.”

It is the latest rescue deal from Gordon Brothers, which purchased Poundland for £1 last year before overseeing significant store closures to help drive the brand’s turnaround.