Coast fashion retailer collapses putting 300 jobs at risk

The women's fashion retailer is bought by Karen Millen after falling into administration.

Fashion model wearing Coast clothes

Women's fashion retailer Coast has gone into administration, putting 300 jobs at risk, in a sign of continuing pain on the High Street.

The collapse means the immediate closure of its 24 stores at locations including Oxford Street in London.

Karen Millen has bought some parts of Coast, whose website and department store concessions will keep trading.

About 600 staff will transfer to Karen Millen, but the remaining 300 workers now face an uncertain future.

Coast was owned by Aurora Fashions, which also owns retailers Oasis and Warehouse. Aurora is controlled by Icelandic bank Kaupthing, which also owns Karen Millen.

The retailer had numerous concessions in House of Fraser and was owed millions after the department store chain itself collapsed earlier this year.

Mike Denny, joint administrator and PwC director, said Coast had been facing financial difficulties due to its concessions business, as well as structural challenges in the retail sector and lower demand for occasion wear.

"This sale puts the ongoing business on a firmer financial footing. Karen Millen will be working with the existing management team to continue to grow and develop the new business," he said.

"Regrettably, other parts of the business including 24 retail stores were not included in the transaction. We will make every effort to help those employees in parts of the business that were not included in the sale and will support those affected at this difficult time by liaising with the Redundancy Payments Service and Job Centre Plus."

Karen Millen said it was confident of being able to boost sales of Coast's "premium womenswear" ranges.

Beth Butterwick, its chief executive, said: "With its beautiful fabrics, stunning colours and signature designs, Coast is a much-loved fashion brand that has dressed women for all occasions since 1996.

"Our expertise and infrastructure puts us in a unique position to create a lean and profitable business, ensuring it remains a thriving destination in department stores and online."

Coast's concessions in department stores including Debenhams and John Lewis will continue to trade and gift vouchers will be honoured online. Uncollected click and collect orders will be refunded in due course.

The collapse of another retailer follows the demise this year of chains including Maplin, ToysRUs as well as House of Fraser.

New Look, Homebase and casual dining chains have also had to close dozens of outlets in a bid to remain profitable.

This week, the owner of the Patisserie Valerie cafe chain said it needed an "an immediate injection of capital" to continue trading in its current form.

The company said it had uncovered "significant, and potentially fraudulent, accounting irregularities".




Date: 11 October 2018 | Source: BBC

More UK News

'Shooting by appointment' the battle to change mindsets in NI

The battle to change community attitudes in Northern Ireland over paramilitary-style attacks

Paddington station: 'Near normal' service after rail chaos

Three of the four closed lines into Paddington will reopen, but some further disruption is possible..

Meghan tries her hand at Aussie Rules football

Thousands of people lined the streets of Melbourne to greet the Duke and Duchess of Sussex

Citizens Advice Scotland report demand for rent arrears advice up 40%

Citizen Advice Scotland says the introduction of Universal Credit is one of the main drivers of the ..

Eritrean asylum seeker, 17, relocation labelled 'tragic'

Abedom Beyene, 17, has made friends through a running club but says he has been forced to move

Welsh parents owe thousands in school dinner debts

More than £400,000 was owed across Wales at the end of last year, according to Welsh councils
View More

More Telford News

 Brexit fears as care firms quit council

A dementia care company quit working for a council because it wasn’t payin..

 Care home plans for Telford manor

A couple have revealed plans to convert a manor into a care accommodation...

 1,000 could join march to protest at Telford A&E night closure

More than 1,000 people have expressed an interest in joining a march to pr..

 Man avoids jail after breaking partner's lover's nose

A man has avoided a jail sentence after breaking the nose of his partner's..

 Trust to meet with Indian Consulate in bid to recruit more A&E staff

The Chief Executive of the Trust which runs Shropshire’s two acute hospital..

 TTC celebrates 25 years of driving change through road safety education

Telford-based TTC is celebrating its 25-year anniversary in style, after ed..
View More

Telford Businesses

Calendar Countdown

[[countdown here]]
[[countdown here]]

Upcoming Events in Telford

24 Oct 2018

Wed 24 Oct - 7:30pm
Thu 25 Oct - 7:30pm
Fri 26 Oct - 7:30pm
Sat 27 Oct - 2:30pm
Sat 27 Oct - 7:30pm


Tickets £15


Group offer: £12 tickets for groups of 20+ per performance

View Details

27 Oct 2018

6- 9pm


Adult & 60+ - £13

Child (aged 3-15) - £9.50
Child (aged 0-2) - FREE
Family (2+2) - £40

Please note Passport tickets are not valid for this event and dogs will not be allowed.

Tickets must be purchased in advance either online

Dogs will not be allowed and remember to bring a torch.

View Details

30 Oct 2018

2.30pm


Tickets £11

Suitable for 5+

Show running time (approx) : 40 minutes - 15 minute interval - 30 minutes

View Details

31 Oct 2018

7:30pm


Tickets £24

Concession £22

View Details

01 Nov 2018

Thursday 1 November 7.30pm

Show running time (approx): 30 minutes support act - 20 minute interval - 1 hour 15 minutes main Roy Chubby Brown


Tickets £23 concession £22

Strictly 18+

View Details
View More