East enters into administration for the second time in under three years

London - East Lifestyle Limited, the high street retailer known as East, has entered into administration for the second time in under three years today, putting 314 jobs at risk.

Phil Armstrong and Geoff Rowley, partners at specialist business advisory firm FRP Advisory LLP, were appointed as joint administrators on January 29. The womenswear retailer, which currently operates 34 stores and 15 concessions, employing a total of 314 members of staff, will continue to trade as normal, while the joint administrators evaluate all potential options for the sale of all, or parts of the business.

East slips into administration after failing to realise expansion plans

East, which was founded in London in 1994, cited difficult trading conditions and a lack of funding as part of the reasons linked to its administration. “Unfortunately East is the latest high street casualty following a tough trading period at the end of last year,” said Rowley in a statement to FashionUnited. “The retailer was making progress to expand its footprint, particularly looking at international opportunities, however it has been unable to secure the necessary funding to realise those plans.”

“We’re now working closely with all stakeholders to evaluate the options to sell all or parts of the business,” he added. The womenswear retailer, known for its colourful prints and bohemian style, previously revealed a 6.5 percent increase in like-for-like sales over the Christmas period, driven by a strong online performance.

This is not the first time the womenswear retailer has undergone an insolvency process. East first entered into administration in June 2015, linking an “inconsistent” approach to the design of its products and the “continuing difficult economic climate” to its deep losses. The womenswear retailer reported losses of 712,300 pounds for the year ending March 29, 2014, after turnover slipped 2 percent to 39.7 million pounds. A new company named East Lifestyle Limited purchased parts of the business back through a pre-pack administration deal worth 3.4 million pounds, saving 550 jobs across 82 stores.

However, 19 stores across the UK were not saved, leading to the loss of 155 jobs. Later on in September 2016 Fabindia, an Indian retail group which has been East’s controlling shareholder since 2012, sold an 80 percent share in the womenswear retailer to New York-based investor Rahul Kakar, from Crore Capital. Suzi Spink, East’s CEO at the time left the business as a result of the sale and East appointed Erica Vilkauls, former chief operating officer at Thomas Pink as its interim CEO two months later.

East’s administration comes as Deloitte issued a statement concerning the number of retailers falling into administration. This number had increased 28 percent to 118 last year, the first major growth in five years. High street retailers including Jaeger, Store Twenty One and Brantano all fell into administration last year.

Photos: East SS18, website