The British online fashion retailer My-Wardrobe.com has been sold to Growth Capital Acquisitions Limited in a pre-pack administration deal, whereby the company enters administration then is immediately bought. The administration process is broadly equivalent to Chapter 11 in the U.S.
Administrators at Leonard Curtis Business Solutions Group were appointed Monday at the firm, which is registered in the U.K. as Meemi Limited. The administrators said their appointment came as the company suffered from “continual cash-flow pressure and mounting losses,” and was unable to raise additional funding. Since its launch in 2006, My-wardrobe.com has been funded through shareholder investment and loan notes totaling 15.4 million pounds, or around $24.8 million, the administrators said.
The firm has been sold as a going concern, securing the roles of 48 of the retailer’s 80 employees, including Carmen Borgonovo’s role as fashion director. The former senior style editor at British Harper’s Bazaar joined My-wardrobe.com in late 2012. Meanwhile David Worby, who joined as global chief executive officer last year, has left the business. Following the sale, My-wardrobe.com will operate from its base in Nottingham, central England, and will retain buying and merchandising teams in London.
In a statement, Andrew Curran, chief operating officer at My-wardrobe.com said: “We now face the future with confidence. I am pleased this difficult period is behind us and I am sure this much respected brand will now go from strength to strength,” he said. “From this secure footing there is much to look forward to in 2014 and beyond.”