LONDON — FRP Advisory LLP, administrators for the British luxury clothing brand Aquascutum, said today that it has begun to shut down the firm’s factory in Northamptonshire, England, with immediate effect.
The closure will result in all 115 employees at the plant being made redundant.
Aquascutum entered into the U.K. equivalent of Chapter 11 bankruptcy protection earlier this week.
FRP Advisory said the plant closure decision followed a detailed review of the company’s financial position.
“The company’s manufacturing plant … is not viable to continue to trade due to loss-making operations and a lack of funding,” the advisory stated.
The administrators described the closure as a “necessary” move “in order to stem on-going losses for the business, and to protect the positions of [Aquascutum’s] 135 remaining employees.”
FRP Advisory said it would provide “appropriate assistance” to all the employees affected by the factory closure. The company said that Aquascutum’s head office and all its retail operations continue to operate as usual.
In a separate statement issued to the Hong Kong Stock Exchange this week, YGM Trading Limited, which owns the rights to Aquascutum’s intellectual property in 42 territories across Asia, stated that possible insolvency of Aquascutum Limited “will not impact on the existing business in relation to the Aquascutum brand of the [YGM Trading Limited] Group.”
The Aquascutum Limited company headquartered in London owns the rights to the Aquascutum brand worldwide, excluding the 42 Asian territories.
YGM said that it is “in its initial stage of discussion in relation to the possible acquisition of the rights relating to the Aquascutum brand outside the Asian territories,” noting that the discussion “may or may not proceed.”
FRP Advisory said today that it has received a “high level” of interest in Aquascutum from potential purchasers around the world. “Our focus is now upon progressing discussions for a sale of the Aquascutum brand and assets,” FRP Advisory said, while declining to comment on any interested parties.