Austin Reed collapse: UK fashion retailer to cut 1000 jobs with all stores closing by end of June

The retailer’s website is not taking new orders but existing ones are expected to be fulfilled

Business advisers have said Austin Reed's demise may be, in part, due to its inability to adapt to recent shopping trends. (Philip Toscano/PA)

British menswear retailer Austin Reed is to close 120 of its stores by the end of June after administrators failed to find a buyer for the entire business.

Nearly 1,000 jobs are set to go as details of the rescue deal started to emerge on Tuesday. Administrator AlixPartners said "no viable offers" for the rest of the business could be found despite a five-week sale process.

Edinburgh Wollen Miller, which rescued Peacocks and Jane Norman and is owned by Philip Day, is understood to have bought the Austin Reed and Country Casual brands as well as five concessions in Boundary Mills, saving 28 jobs. However, the company refused to take on the entire store estate.

A number of high profile names including Mike Ashley’s Sports Direct and Dragon Den’s Touker Suleyman, had also expressed interest in buying in saving part of a chain but an offer did not materialise.

“We have explored all options to sell the business since our appointment and continued to trade the business with the support of the secured creditors in what is clearly an extremely challenging retail environment, “ said Peter Saville, joint administrator at AlixPartners

“Despite a significant number of interested parties coming forward during this period it became clear as the process progressed that a viable solution which kept the business whole was not forthcoming. As a result we have made the difficult decision to cease trading the business and commence a wind-down of the estate,” he added.

The retailer’s website is not taking new orders but existing ones are expected to be fulfilled.

The 116-year-old chain fell into administration in May dealing another blow to the UK high street only one day after BHS’s collapse also sought creditor protection putting 11,000 jobs at risk.

Austin Reed, which trades from 100 standalone stores and 50 concessions throughout the UK and Ireland, has struggled to compete in Britain's competitive clothing market.

In October, it posted a £5.4 million loss in the year to 31 January, compared with a £1.3 million loss the previous year. Sales also dropped by 8 per cent to £100.5 million.

The company blamed the fall on challenging retail market conditions and said its websites was generating more revenue than its physical stores. In February last year, the retailer was forced to close 31 stores to pay its own debts.

Austin Reed, which started in 1900 as a tailoring business in the City of London, once counted Winston Churchill and Elizabeth Taylor as its high profile customers.

The brand’s store portfolio is expected to be sold to other retailers.