Nicole Farhi creditors stand to lose 3 million pounds

Luxury fashion label Nicole Farhi collapsed last month with debts of almost 20 million pounds, according to the administrator’s report. The brand, which fell into administration in July, went under owing close to 20 million pounds, including 15.7 million

pounds to its owner Kelso Place Asset Management, more than 500,000 pounds to the taxman and 2.9 million pounds to unsecured creditors, according to The Telegraph.

As well as HMRC, other unsecured creditors include staff and a number of model agencies including Storm Model Management and Select Model Management, which were owed money for providing models for the brand’s presentation during London Collections: Men in June.

Administrator Zolfo Cooper was appointed last month after the premium retailer had suffered a period of “sustained losses” and needed “significant further funds” to be able to stock its autumn/winter collection, the administrators report stated.

Nicole Farhi collapsed with debts of almost 20 million pounds

It only took three weeks to find a buyer, with fashion entrepreneur Maxine Hargreaves-Adams, the daughter of Matalan founder John Hargreaves, agreeing to acquire Nicole Farhi’s London flagship store, three further stand-alone stores, two outlet stores and its head office, beating offers from five other parties.

In July, Hargreaves-Adams said she was “delighted” to acquire the brand, which she described as an “iconic and much-loved British brand”. The Nicole Farhi label joins a portfolio that includes womenswear brand Fenn Wright Manson, which Hargreaves-Adams acquired in 2012 and Damsel in a Dress.

Fashion designer Nicole Farhi founded the label in 1982 with French Connection founder Stephen Marks. In 2010, French Connection sold the retailer to OpenGate Capital, before Kelso Place Asset Management bought the brand.