UK fashion brand, discount site and more collapse into administration

Several major UK businesses have fallen into administration over the past week. A huge British fashion brand and a cycling retailer are among those affected.

The escalating costs of running a business remain a significant worry for many, with soaring energy bills proving particularly challenging to manage. Shifting consumer spending habits are also taking their toll, creating a damaging knock-on effect throughout the retail sector. This has left certain companies with little alternative but to call in administrators. Here is a roundup of the latest businesses sadly impacted.

BrandAlley

The members-only shopping website, renowned for offering heavily discounted fashion and homeware goods from leading brands, has collapsed into administration after nearly two decades of trading. The site was slashed up to 80% off designer items, spanning clothing, beauty products, furniture and homeware.

BrandAlley was established in 2008, amassing a loyal following thanks to its price reductions on premium goods during its popular flash sales. However, Kiri Holland and Danny Dartnall, from accountancy firm BDO have been appointed joint administrators of BrandAlley UK Limited as of Friday, May 29.

The company has confirmed that customers may continue to shop on the site as usual, with all outstanding orders, returns and refunds to be handled by the new company.

The business reportedly encountered severe financial difficulties and has since been sold via a pre-pack administration deal to a new entity trading as BrandAlley International Limited. Of its 163 employees, 83 have been retained to help with the sale and 60 will stay on temporarily to assist with the handover. Meanwhile, 15 have been made redundant.

Cycling store

Saddleback, based in Yate near Bristol, has shut its doors due to mounting financial pressures after 22 years of trading. The retailer supplied bikes, cycling accessories and clothing to customers throughout the UK, but directors were forced to call in administrators after failing to offload the business.

Mr Dunn said: “Our immediate priority is supporting those employees who have been made redundant and helping them access financial support.”

Trapstar

The British fashion label, which won over celebrities including Rihanna and Stormzy, has collapsed into administration despite generating millions in profit in recent years.

Administrators from Interpath Advisory were appointed on Friday following a two-month effort to secure financial backing.

The streetwear brand soared in popularity during the Covid pandemic, generating £40million in 2022 according to reports. There is said to be interest from prospective buyers as the brand looks to overcome its current difficulties.