Jim Tucker and Richard Beard of KPMG have been appointed as joint administrators of fashion retailer, American Apparel, as the UK business is set to close its 13 stores
The Los-Angeles based company is in the process of selling its brand and US business, however the UK and other European operations are not part of the sale so are therefore likely to be wound down.
No redundancies have been made and all UK stores are trading as normal.
Jim Tucker, joint administrator and restructuring partner at KPMG, said: ‘The American Apparel group has been experiencing strong retail headwinds, which has culminated in the US parent deciding to stop inventory shipments to the UK. The UK business has experienced similar trading difficulties, resulting in the appointment of administrators.
‘The 13 UK stores are well stocked and will continue to trade as usual in the lead up to the peak Christmas trading period. Whilst the UK business is not part of the US sale, a number of the UK stores are in prime high street locations, and we will also aim to sell individual stores following the Christmas trading peak.’
On American Apparel’s UK website the following message is being displayed: ‘American Apparel will no longer maintain an online presence in the UK. We would like to express our gratitude to you for your business.’
