The UK retailer for French fashion label Morgan has gone into administration, closing down its 66 outlets and making 600 staff redundant.
David Crawshaw and Myles Halley of KPMG were on Thursday night appointed administrators to Morgan UK after poor trading saw it run out of cash, leading Morgan SA to withdraw its distribution agreement.
Mr Crawshaw said the privately-held retailer, which has 19 stand-alone stores and 47 department store concessions, saw like-for-like sales during the six months to June fall 19.1 per cent to £11.8m.
“As a result of this and subsequent losses, the company faced an increased funding requirement to pay wages, landlords and creditors,” he said. “The company’s shareholders were not able to raise the additional finance,” said Mr Crawshaw.
As well as withdrawing from the distribution agreement, Morgan SA exercised its rights over retention of title on stock, “which left the company no alternative but to enter into administration”, he added.
Mr Crawshaw said expressions of interest had been received but the company could not continue trading without a distribution agreement and stock.
“As a result, we have wound down the business and regrettably made approximately 600 staff redundant.”
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