British high street chain to close 21 stores with 42 jobs lost

Luxury handbag and accessories brand Radley has been acquired by the owner of Poundland — but its retail outlets are now facing the threat of closure. Investment firm Gordon Brothers, which also owns LK Bennett, has taken control of Radley via a pre-pack administration — however, the deal will result in the loss of 42 jobs.

The takeover encompasses the intellectual property assets of Radley, but excludes its two UK shops in Covent Garden, London and Glasgow, Scotland, as well as its 19 concessions. Drapers reports that these are expected to trade for roughly 14 weeks to clear stock. Radley, renowned for its distinctive Scottie dog branding, suffered a pre-tax loss of £5.5million in its last financial year. Meanwhile, turnover fell from £72million to £65.8million.

The company was founded as a stall in London’s Camden Market in 1998.

Carolyn D’Angelo, Senior Managing Director, Head of Brand Operations at Gordon Brothers, said: “We are honoured to be the brand stewards for this modern British brand and look forward to bringing Radley to a wider consumer audience, with new territories, product categories and retail distribution channels.”

Nimit Shah, Managing Director at Gordon Brothers, said: “With our cross-border capabilities and deep experience in investing in and operating retail brands, we are well positioned to unlock value and expand these businesses into new markets while staying true to what makes each brand unique.”

In a statement, FTI Consulting said: “The administration appointment follows 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.”

Flying Tiger markets its own range of Scandi-inspired, budget-friendly products, encompassing everything from homeware and stationery to toys. The retailer operates around 80 shops across the UK and is owned by Danske Bank and Nordea.

However, a fresh report by The Times suggests the chain is on the brink of acquisition by private equity fund Modella Capital, with City sources telling the newspaper that an announcement could come at any moment.

This follows reports that financial advisers were brought in earlier this year to explore options for Flying Tiger, including a potential sale.

In its most recent results, Flying Tiger described its 2024 performance as “record-breaking”, posting revenues of DKK 5.2 billion.