Gieves & Hawkes edges closer to end game over parent company woes
Gieves & Hawkes, the luxury bespoke tailoring business, could be a step nearer to closing down after 250 years as the problems facing its parent company continue to weigh on its operations and a crunch creditor vote looms next week. Also at risk is sister company Kent & Curwen.
The Savile Row tailor and its portfolio-mate face a winding up order and could close unless a new backer is found, The Times reported.
The firms are ultimately owned by Chinese conglomerate Shandong Ruyi Technology Group, which is struggling in the face of a huge debt load. The business also owns the Cerruti brand.
It’s believed that the search for a buyer continues and a restructuring firm has been recruited. But sources told the newspaper that the best chance of finding a buyer is to opt for liquidation.
In recent years, buyers of distressed brands have often shown themselves more willing to step up once a company has been put into administration or liquidation as it removes many of the complications (such as onerous store leases) that would come with buying a going concern.
Gieves & Hawkes has its historic premises a 1 Savile Row but also operates another 58 shops in 25 cities.
The crucial creditor vote in Hong Kong will happen on November 4.
Copyright © 2022 FashionNetwork.com All rights reserved.