After entering voluntary administration in February this year, men’s fashion brands Rhodes & Beckett and Herringbone have been saved from an uncertain future thanks to a management buyout, announced today.
Luke Targett of turnaround, restructuring and insolvency advisory firm Cor Cordis, who was appointed as a voluntary administrator said the sale means that “the Rhodes & Beckett and Herringbone brands will survive and jobs have been saved”.
He said Cor Cordis’ “two stage strategy” with regard to the brands had paid off.
“We appointed Gordon Brothers to complete an inventory clearance program, which then enabled us to successfully negotiate with interested parties to purchase the business with a fresh start and a new product range and offering,” he said.
“It is satisfying that unlike so many recent retail collapses, we have been able to restructure the business to ensure that the brand, stores and business will survive albeit in a leaner and more focused incarnation.”
The purchaser, Black Bear Holdings Pty Ltd, is headed by current brand director Michel Boutin and supported by Hong Kong-based private equity firm AO capital.
As a precursor to the sale, eight Rhodes & Beckett concessions in Myer stores were recently closed, coinciding with the expiration of an occupancy agreement with Myer. Staff at the concessions have been redeployed to other stores where possible. A total stock clearance program is also in progress, with everything reduced.
Negotiations are underway with landlords of the 15 remaining Rhodes & Beckett and Herringbone stores, which will determine the new business’ store footprint.
The relaunch of Rhodes & Beckett is expected to occur later in the year, while negotiations are ongoing with regard to the relaunch of the Herringbone brand.
Want the latest retail news delivered straight to your inbox? Click here to sign up to the weekly retailbiz newsletter.