East, British High street fashion brand falls into administration
High street fashion brand, East, which has multiple stores in Norwich, London street, Bury St Edmunds and Buttermarket is in deep trouble as it entered administration on Monday afternoon. This is the second time that the company has entered administration in less than 3 years. FPR Advisory’s recovery partners, Philip Armstrong and Geoff Rowley have been selected to supervise the administration.
Speaking about this situation, Geoff Rowley said that East is unfortunately the newest high street fashion brand that has entered into administration following a difficult trading period in the fourth quarter of 2017. Adding further, Rowley said that the brand was working hard to grow its operations globally but it couldn’t get the funding it required to execute this task. Mr. Rowley also said that he and his partner are working in tight coordination with all stakeholders to assess the option to sell the business.
East was launched in 1994 by ex-monsoon employees Jonathan Keating, Clive Pettigrew and Penny Oliver.Fabindia was the firm behind East that provided it local goods made by artisans in Rajasthan and Jaipur. The brand has 34 outlets and 15 concessions across the United Kingdom. It employees around 314 employees. The brand will continue to operate in the UK while administrators will assess the best option for the company. Previously in 2015, 15 East store entered administration and were closed in a pre-pack deal. East’s news comes after Toys R Us revealed that it is losing 26 stores in UK while House of Fraser and Marks & Spencer announced huge losses in sales.
The most worrisome news for East’s 314 employee is that they might just lose their jobs. Armstrong said that if stakeholders decide to shut down business then unfortunately all employees will lose their jobs. Armstrong and Rowley are expected to reach a decision on Easts future by the end of this month. East had a 20 year history in the fashion market of London but it just couldn’t compete with its rivals. Closure of East can also signal a decreasing demand for high street fashion brands in the UK.