Major clothing retailer loved by Kate Middleton on brink of collapsing into administration risking huge job losses
A MAJOR clothing retailer beloved by Kate Middleton is on the brink of collapsing into administration.
The maternity fashion brand was a favourite of Kate’s during her pregnancies.
Seraphine has reportedly filed a notice of intent to appoint administrators two years after leaving the London stock market.
In June the company filing indicated its plan to find a new strategic partner which could include finding a new investor or pursuing a full sale.
It leaves the company’s future uncertain, putting jobs at risk.
Seraphine currently employs 95 individuals who could be made redundant depending on the outcome of the process.
It had undergone a relaunch in April, emphasising “forum, function and fit” according to Theindustry.fashion.
The company was founded in 2002 in London by Cécile Reinaud, but it has experienced financial difficulty since she left the company in 2021.
It comes despite the brand’s former success among celebrities, being worn by Kate Winslet, Anne Hathaway and Myleene Klass.
Seraphine was also the brand donned by the Princess of Wales for the first official family portrait after Prince George’s birth.
While it was valued at £150m on the London Stock Exchange in 2021, by 2023 its majority shareholder Mayfair Equity Partners, had decided to take it back off the market.
Its value had fallen to a reported £15.3m as profits declined.
The financial trouble did not improve even after going private, making an operating loss of £13m on revenues of £42m in the last financial year.
In a post on LinkedIn earlier this year, Reinaud criticised the direction the brand had taken after she left.
She wrote: “My original vision was to create clothes you’d want to wear even if you weren’t pregnant.
“That guiding principle seems to have vanished now.”
She also criticised the company’s rebrand as it moved away from its “unique British heritage and signature regal purple” towards a more Scandinavian inspired logo.
Cécile added: “Seraphine was once a proud example of British fashion entrepreneurship, recipient of two Queen’s Awards: now, it seems to have lost its recognisable identity.”
It comes as other high street retailers struggle to survive among declining business.
Fellow retailers like Quiz Clothing and Select Fashion have recently entered into administration.
Since Covid, many retailers have struggled to adapt to a consumer base that has moved increasingly online.
With high streets left almost empty, brick and mortar stores have begun to close at a concerning rate.
These issues have been compounded by the cost of living crisis – with businesses facing higher National Insurance contributions and minimum wage since April of this year.
What does it mean when a company goes into administration?
ADMINISTRATION is when all control of a company is passed to an appointed to a licensed insolvency practitioner.
It doesn’t necessarily mean the end of the business.
Instead, administrators will try to help a company find ways to repay debts or solve its cashflow problems.
Administration can last anywhere from a few weeks to up to a year or more.
But if the administration process can’t rescue the company or find a new owner, this can lead to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
