A major UK high street chain is facing closure at several of its branches, including a flagship London store, after being bought out of administration.
Accessories outlet Radley has been purchased by Poundland owner Gordon Brothers.
The firm, which also owns LK Bennett, purchased the brand, intellectual property and some assets in a pre-pack administration deal.
Radley has 21 UK shops and was founded at a stall in Camden Market in the 1990s.
Its branch in Covent Garden is among those at risk, as the takeover does not include Radley’s retail operations.
It has been confirmed that 42 jobs will 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.
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.
