Closure of Manchester Clothing Line Leaves 204 Jobless
‘Poor trading condition’ has crippled a clothing line in Manchester as Ernst & Young administrators are seeking buyers of the defunct business, sending home 204 employees jobless.
Henley’s Clothing adds up to the number of clothing line businesses that have been going bust in recent months, the most recent of which being the British store, All Saints, which has called in business consultants from Ernst & Young on February to advise on the £140 million sale of the high street retailer.
The clothing line has decided to shut down its 18 stores across the UK, 15 of which are standalone stores while the rest are retail outlets. Henley’s Clothing also cited difficulty in leases as the cause of the closure.
Tom Jack, one of Ernst & Young administrators, said “fragile” confidence from customers triggered the downturn of trading in the clothing line company, compounded by rising price of lease contracts, that eventually led to the downfall of Henley’s.
The closure of its retail arm is expected to allow for the clothing line to put much of its attention to its core business, Henley’s Clothing. The firm is a supplier to major UK retailers and more than 200 stores in the country and abroad. Nonetheless, the clothing line’s online store remains unaffected by the administration.
According to Henley’s Clothing CEO, David Inglis, the closure of the firm’s retail arm is the result of a strategic review which led the clothing line company to focus more on its wholesale operation. Its wholesale business is said to expand overseas, including Australia, Canada and mainland Europe.
Come July, the clothing line will launch again its brand while it accumulates funds for such endeavor.