High street woes continue as Austin Reed collapse causes 1000 job losses

Around 1,000 high street jobs are set to be lost as clothing retailer Austin Reed prepares to close 120 stores over the coming month.

The company, which fell into administration in April following cash flow issues and market challenges, is now entering “a managed wind-down process” according to administrators AlixPartners.

In a BBC report, joint administrator Peter Savile said: “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.”

Founded in 1900 with its first store on Fenchurch Street in London, the company once counted Prime Minister Winston Churchill among its clients.

While no main buyer was found for the business after it entered administration, five Austin Reed concessions in Boundary Mills shopping complexes across the North have been acquired by the owners of Langholm-based retailer Edinburgh Woollen Mill, who are also reportedly in the process of buying garden centre chain Dobbies.

The transaction resulted in the transfer of 28 members of staff.

The fall of Austin Reed follows the recent struggle of department store chain BHS, which is currently seeking a buyer to avoid what some are calling the biggest high-street collapse since Woolworths.