Austin Reed To Close All Stores By End Of June

Austin Reed is to close all 120 of its stores by the end of June, affecting approximately 1,000 staff.

Administrators said no viable offers were found for the business, including the store estate.

However, five concessions which operate within Boundary Mills outlets, along with Austin Reed's brand, have been acquired by Edinburgh Woollen Mill.

The clothing chain had a rich history, and famous customers in its heyday included Sir Winston Churchill and Elizabeth Taylor.

Peter Saville, joint administrator at AlixPartners, said: "We have explored all options to sell the business since our appointment and continued to trade the business with the support of the secured creditors in what is clearly an extremely challenging retail environment.

"Despite a significant number of interested parties coming forward during this period it became clear as the process progressed that a viable solution which kept the business whole was not forthcoming.

"As a result we have made the difficult decision to cease trading the business and commence a wind-down of the estate.

"We would like to take this opportunity to thank all employees for their support and efforts during this unsettling period and wish them well for the future."

Business advisers have said Austin Reed's demise may be, in part, due to its inability to adapt to recent shopping trends.

Rupert Eastell, a retail expert at RSM, said: "The company's offer has been inconsistent, the ranges have been poor and the stores have looked rather tired.

"Perhaps most disappointingly, the website is not good enough by today's standards.

"It (Other OTC: ITGL - news) 's certainly true that there has been a trend away from formal wear in recent years, but Austin Reed's competitors have demonstrated that you can be successful in this part of the market."