Latest news with #Seraphine
CNBC
4 days ago
- Business
- CNBC
CNBC's UK Exchange newsletter: Britain was once known as a ‘nation of shopkeepers.' Now, not so much
England, Napoleon Bonaparte reputedly once said, is a nation of shopkeepers. These days, he might observe that it is more a nation of administrators, insolvency practitioners and restructuring advisors. Barely a day passes without news of another retailer going bust or closing dozens of stores. To take a handful of headlines from the last week: advisors have been appointed to salvage part of Claire's U.K., the British arm of the global accessories chain, which has 281 outlets nationwide; Hamleys, the world famous U.K. toy retailer, has closed 29 stores after shutting 40 in 2023; and Seraphine, the maternity retailer whose customers included the Princess of Wales, has stopped trading altogether. They are just the tip of the iceberg. Poundland, recently offloaded for just £1 by its Polish-listed former parent Pepco to the U.S. investment group Gordon Brothers, is widely expected to close dozens more stores on top of those already announced as its restructuring begins in earnest. Hobbycraft, the arts and crafts retailer, and the Original Factory Shop, a general retailer, are both closing scores of outlets following their acquisition by Modella Capital, the U.K. private equity firm currently in the process of buying the high street arm of WH Smith, the stationery retailer now best known for its outlets in airports around the world. Some of its branches are also likely to shut. The pain is being felt most acutely in fashion retail, reflecting increased competition from online competitors like ASOS and Shein. New Look, which has delighted generations of teenagers and 20-somethings for 55 years, is fighting for its life and earlier this year announced plans to shut 100 outlets, around a quarter of its total, when their leases expire. The even-older River Island — which dates back to 1948 and, in the swinging 1960s, rebranded itself Chelsea Girl as it rode the mini-skirt boom — has also called in advisors to help with a possible restructuring. It currently employs some 5,500 people across more than 250 stores. They follow a long line of well-known U.K. retailers to have closed their doors during the last decade or so — some still soldiering on as online-only brands — including Topshop, Dorothy Perkins, Ted Baker, Thorntons, Carpetright, Paperchase and Debenhams. Others, such as the Body Shop and Wilko, are under new owners, which tends to come with a vastly reduced store estate. The retail sector is not alone in suffering. Hospitality is also afflicted with even established names like Byron Burger, Chipotle, Frankie & Benny's and Papa John's closing sites across the U.K. The most recent casualty was Ping Pong, a popular dim sum chain, which closed for good last week after 20 years in business. There may also soon be closures at Côte, a brasserie chain which once had 100 outlets, whose private equity investors are now seeking new investment. In all, around 17,350 retail sites are expected to shut down this year, with the loss of almost 202,000 jobs, according to the Centre for Retail Research, a data provider. It estimates that, during 2024, some 13,479 stores closed, following 10,494 closures during 2023. To say the trend is accelerating is both accurate and worrying. There are several short-term reasons for this carnage and plenty of long-term ones. The most important of the former is the rise in employers' National Insurance Contributions (NICs), a payroll tax, introduced by Chancellor Rachel Reeves in April this year. However, more damaging than the increase in the rate — which rose from 13.8% to 15% — was a drop in the threshold at which it is paid from £9,100 to £5,000. That has increased the cost of employing people and, in particular, the part-time workers crucial to retail and hospitality. A number of employers have blamed it for both job losses and branch closures. Among them was Bob Wigley, co-owner of Margot, a popular restaurant in London's Covent Garden recently forced to close. Wigley, previously one of the City's best-known investment bankers, posted on LinkedIn that one of the restaurant's managers had told him: "We survived Covid but we can't survive Labour." The government told CNBC that its tax changes were "tough but necessary," and are needed to "protect working people's payslips from higher taxes," and invest in public services. The British Retail Consortium, the main industry body, has estimated that the hike in employers' NICs will cost the retail sector alone some £2.3 billion. Other near-term factors include the recent rise in the minimum wage from £11.44 ($15.38) an hour to £12.21. The age at which it kicks in was also reduced from 23 to 21 — making it more expensive to hire younger workers — while the rate for 18-20-year-olds rose from £9.60 an hour to £10. Wages have also been rising more broadly, following several years of above-average earnings growth across the economy, a result of the U.K.'s tight labor market and the rise in economic inactivity since the pandemic. But as unemployment — and with it, job insecurity — starts to rise, consumers are increasingly eating into their savings or becoming more frugal. The U.K.'s savings ratio, which spiked during the pandemic and remained high afterwards, is now falling for the first time this decade. As Clive Black, head of consumer research at the investment bank Shore Capital and one of the City's most renowned retail-watchers, put it in a recent client note: "U.K. consumers are low on confidence, fed up with broken Britain." Local councils have also pushed up parking charges and introduced so-called "low traffic neighborhoods," making high-street shopping tricky for those who rely on their cars, prompting many bigger operators —the likes of Next and Marks & Spencer — to shift to out-of-town retail parks. But there are also longer-term factors. Business rates — a tax dating back 400 years levied on the "rateable value" of most non-domestic properties such as shops, offices, pubs and warehouses — hit bricks-and-mortar retailers much harder than online retailers like Amazon, which is also blamed for sucking business away from the high street. In its election manifesto last year, the governing Labour Party promised to "level the playing field between the high street and online giants," but its solution — hitting larger properties more heavily to fund lower rates for smaller premises — has alarmed many in the sector, including supermarket multiples like Tesco, Sainsbury's and the Co-op. The government says its business rates system is designed to "protect the high street" and support investment. Regardless, the acceleration in store closures has raised fears that this is a structural downturn, rather than just cyclical. There is some evidence for this. In the past, when an established retailer was forced out of business, other operators stepped in to take its place. A good example is the U.K. arm of Woolworths, the much-loved variety store chain, whose 807 outlets closed — with the loss of 27,000 jobs — in late 2008 and early 2009 at the height of the financial crisis. New tenants were quickly found for many of these as rivals, such as B&M, stepped in to take the sites at a cheaper rent. Many of these, including the likes of Poundland, Poundstretcher and Original Factory Shop are now themselves struggling. However, more recently when a store has closed, it has remained closed, which, added to the exodus to retail parks, has left many high streets with a sense of decay. When a big retail destination closes or moves out, footfall is reduced. Accordingly, a typical British high street, which in the 1980s or 1990s boasted familiar names like Boots, Woolworths and Marks & Spencer, is more likely these days to be home to vape shops, American-style candy stores, tattoo parlors and charity shops (the latter of which benefit from significantly lower business rates). The sense that this is a structural change also reflects a shift in retail property ownership. The big U.K. commercial property players such as Land Securities and British Land, where they have exposure to the retail sector at all, will do so largely via retail parks or shopping centers. The typical high street landlord is more likely these days to be a "mom and pop" operator unable to offer tenants better terms when they run into difficulty. All of this sounds like a perfect storm, yet there is another, less frequently acknowledged factor at play: going into the 21st century, when Amazon began eating the lunch of the old bricks-and-mortar retailers, there were simply too many players. Many retailers will not countenance the idea, but perhaps what we have seen over the last quarter century is simply over-capacity being taken out of the Rachel Reeves faces mounting pressure Investors are looking for clues on how Reeves plans to fill a black hole in the budget as we approach the Autumn Budget, when next year's fiscal plans are announced. UK GDP underperforms on the month — what happens now? The U.K. economy unexpectedly shrank again in May and economists expect growth to slow in the rest of the year amid a weaker jobs market and ongoing economic uncertainty. JPMorgan CEO Jamie Dimon tells Europe 'you're losing' on competitiveness Jamie Dimon last week lamented Europe's lack of competitiveness in comparison to the U.S. and China. Listen in to see what he had to say, and how CNBC's anchors reacted to his an exodus of millionaires, businesses and workers, has London lost its spark? London has taken a bit of a battering lately. CNBC asked analysts whether the city is on downward trajectory, or just experiencing some bumps in the road. The UK's budget gap is widening and markets want to know Reeves' fix. Chancellor Rachel Reeves' Mansion House is a crucial opportunity to signal the steps she will take to inject growth back into the U.K. economy. UK economy contracts again in May, missing expectations for slight rebound. The U.K. economy unexpectedly shrank again in May, data showed Friday, failing to shake off the impact of U.S. tariffs and business uncertainty.U.K. stocks have been strong outperformers over the past week, with the FTSE 100 gaining 1.6%. The index notched a record intraday high above 9,000 points on Tuesday. London-listed companies have been boosted by the fact that the U.K. has already negotiated a trade deal with the White House, while business in the European Union remain mired in uncertainty — and under threat of 30% U.S. duties — heading into earnings season. Further support has come from a decline in sterling, which has dropped 1.5% against the U.S. dollar to $1.339 over the past week, as Bank of England Governor Andrew Bailey suggested the central bank would be more forceful with interest rate cuts if the labor market weakens. A weaker pound can be beneficial to FTSE 100 firms, a majority of which derive their revenue overseas. The gilt market has been relatively calm following its recent spell of volatility. The 10-year yield has eased to 4.62% from 4.63% over the past seven days, while the 2-year yield is down to 3.83% from 3.88%.
Fashion United
6 days ago
- Business
- Fashion United
Next and Frasers said to be in running for Seraphine rescue deal
Following Seraphine's descent into administration last week, speculation over potential saviours are beginning to swirl. Among them, British retail giants Next and Frasers Group are said to be frontrunners in potential deals to rescue the maternity wear brand. According to sources for Drapers, dubbed 'several industry veterans', the two firms are being tipped as the top contenders to buy Seraphine out of administration. A purchase is likely to be in the 'low single-digit millions'. A former fashion retail CEO told the media outlet that Next was likely to 'get a good deal on Seraphine', but that its interest most likely lies in the brand's intellectual property instead of the entire business. For Frasers, Seraphine's price point could allow it to 'fit right in' within its portfolio, a supermarket fashion executive told Drapers. They added: 'It's going to be a hard buy. It's a niche sector and birth rates are falling, but there will always be demand for maternitywear.' Another source told the platform that US-based private equity firms were also believed to be eyeing the business. Seraphine entered administration on July 8, appointing advisors at Interpath to oversee the process. At the time, the brand said 'trading challenges' had been 'exacerbated by fragile consumer confidence which had negatively impacted sales'. In May, following a rebrand, the company had attempted to secure extra investment to support its next phase of growth, yet 'pressure on cashflow continuing to mount' meant that it was forced to accelerate its review of options. FashionUnited has contacted Next and Frasers Group with requests to comment. Interpath declined to comment.
Daily Mail
12-07-2025
- Business
- Daily Mail
I lost my job at Kate Middleton's favourite maternity dress firm... after I took maternity leave
A former employee of a pregnancy clothing brand loved by the Princess of Wales has accused the firm of making her redundant – after she took maternity leave. Seraphine, which has its flagship store on London 's Kensington High Street, crashed into administration last week, leaving 95 staff out of work after it failed to find a buyer. Now the firm is facing fresh controversy after its former head of merchandising, Olivia Brooks, said she was 'treated in a way no one should experience' when she came back to work after having a baby. She wrote on the social networking website LinkedIn: 'My time at Seraphine ended in February, when I was made redundant shortly after returning from maternity leave.' She said her forced exit came shortly after her daughter became unwell and had been through multiple surgeries. Ms Brooks filed a claim against Seraphine at an employment tribunal in London in April, with a preliminary hearing set for January 7. She wrote: 'At what was already the hardest and most vulnerable time in my life, I found myself pushed into a redundancy process. 'For legal reasons, I can't share the details, but I can say I was treated in a way no one should experience. 'Sadly, this is not an isolated story: every year in the UK, an estimated 74,000 women lose their jobs as a result of pregnancy or maternity leave. It happened to me. 'And, working for a maternity brand, many in my network have been shocked to learn this.' One former employee told The Mail on Sunday: 'The tagline of the company is 'With Mums for the Journey', but we say, '...unless you work there'.' The brand gained global attention when Kate wore its pieces throughout her three pregnancies. Other celebrity fans include Myleene Klass, Sophie Ellis-Bextor and Anne Hathaway. A spokesman for the company's former management said: 'Seraphine has always been committed to being an inclusive employer. 'We took great pride in our best-in-class maternity policy, befitting a brand dedicated to helped new mums. 'When the business was operating, nearly 80 per cent of our staff were women at all levels of the business. Olivia published a post on her LinkedIn in which she said her forced exit came shortly after her daughter became unwell and had been through multiple surgeries 'Over the course of the last 12 months, we conducted two rigorous investigations into grievance claims related to Seraphine's restructuring, which concluded with no findings of any wrongdoing. 'As a result, Seraphine disputes any accusations related to those claims.' Cecile Reinaud – who founded the firm in 2002 and left in 2021, two years before it was bought by private equity firm Mayfair for £50million – last night told Ms Brooks on LinkedIn: 'I am beyond disappointed Mayfair... allowed such malpractice and discrimination. 'I built Seraphine for women and the thought that such a toxic culture could exist is deeply unsettling.
Yahoo
08-07-2025
- Business
- Yahoo
Maternity fashion brand worn by Princess of Wales falls into administration
A maternity fashion brand previously worn by the Princess of Wales has collapsed into administration, two years after it quit the London stock market. The majority of Seraphine's 95 employees have been made redundant following the appointment of Interpath as administrators. The business has also immediately ceased to trade. It comes after weeks of attempts to find a buyer for the business, as it battled a cash crunch. While there was some interest following a process that began in June, a buyer for the whole business could not be found. Will Wright, the UK chief of Interpath, said: 'Unfortunately, the strong economic headwinds that have been impacting a number of the UK's high street and online retailers, including rising costs and brittle consumer confidence, have proved too challenging to overcome.' Interpath said it was exploring options for the business and its assets, including the Seraphine brand. It said it was providing support to staff who had been made redundant. Founded in 2002 in London by French entrepreneur Cécile Reinaud, the maternity brand's clothes were worn by the Princess of Wales in 2013 for the first official family portrait following the birth of Prince George. Seraphine's clothing has also been worn by celebrities including Kate Winslet, Anne Hathaway, Sophie Ellis-Bextor and Myleen Klass. The company floated on the London Stock Exchange in the summer of 2021 at a value of £150m. However, it suffered a string of profit warnings and Seraphine's majority shareholder Mayfair Equity Partners, a private equity firm, took it off the stock market in 2023. At the time, Mayfair agreed to inject fresh capital as part of a takeover that valued the company at just £15.3m. Seraphine has continued to struggle since going private. It made an operating loss of £13m on revenues of £42m during its latest financial year. Ms Reinaud, who left Seraphine in 2021, has publicly criticised the stewardship of Mayfair. She wrote on LinkedIn earlier this year: 'My original vision was to create clothes you'd want to wear even if you weren't pregnant. That guiding principle seems to have vanished now. 'Just yesterday, the brand unveiled a new logo that makes it resemble a Scandinavian label. Why abandon our unique British heritage and signature regal purple? 'Seraphine was once a proud example of British fashion entrepreneurship, recipient of two Queen's Awards: now, it seems to have lost its recognisable identity.' Mayfair defended the rebrand at the time as 'a hugely exciting moment for Seraphine, with the unveiling of its enhanced website and refreshed brand identity that incorporated consumer desire for a modernised look and feel.' The company's collapse marks the latest sign of mounting pressure on the high street. A string of fashion brands including Quiz Clothing and Select Fashion have entered administration in recent months. The number of companies in critical financial distress rocketed towards the end of last year, according to corporate restructuring firm Begbies 'Red Flag Alert', rising 50pc between the end of September and December. Retail was identified as one of the sectors facing acute challenges. High street businesses have been battling against a downturn in consumer confidence. Figures last month suggested that nervous families had frozen spending, with the British Retail Consortium finding that retail sales were up just 1pc in the year to May. Like other businesses, shops also face higher costs as a result of the changes to employers' National Insurance contributions and minimum wage, which took effect in April. Mayfair and Seraphine did not respond to requests for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
08-07-2025
- Business
- Daily Mail
Seraphine founder left 'heartbroken by collapse of royal favourite maternity fashion brand
The founder of one of the Princess of Wales' favourite maternity fashion brands said she is 'heartbroken' over its collapse. Cecile Reinaud, who founded Seraphine in 2002, bemoaned that 20 years' of work were wiped out after the retailer collapsed into administration this week. Some 95 jobs were lost when the label appointed administrators from Interpath Advisory, after its new owners failed to find a buyer to save its staff and London flagship shop. The business was bought by private equity outfit Mayfair for £50million in 2023. In May, Reinaud accused it of losing its way with a rebrand that ditched its 'regal purple' for what she described as a 'Scandinavian' look. The brand gained global attention when the then Duchess of Cambridge wore its pieces throughout her three pregnancies, including in the first official pictures of Prince George in 2013.
