Ronit Zilkha to remain trading

Ronit Zilkha has found a last minute backer and will not go into administration, as was reported in Draper's Record last week. The company, which shows during London Fashion Week, has been struggling for months, and was rescued by Jonathan Mocton, finance director of footwear wholesaler NLG and Howard Moher, managing director of branded supplier Cavden Group. The due, which set up a company called Tight Finnish, took control of the designer label's six stores and 11 concessions last week.

Moncton told Drapers that there could be a problem with Spring Summer 2006 deliveries and that he had not acquired the wholesale division of the business. Tight Finish is though to have bought the order book and some spring styles are understood to be in production.

Ronit Zilkha was founded in 1991 and has been one of London Fashion Week's more successful businesses. It is known for its classic and feminine occasionwear and its use of premium fabric.

Five of its stores are in London and administrator David Rubin & Partners said the business had been badly affected by the dip in footfall in the capital following the July 7 attacks. Moncton said that all the stores would continue trading normally. Its concession in the Harvey Nichols London store has already closed, but the remaining 10 concessions in House of Fraser will continue.