The collapse of a well-known British retailer has left a trail of financial damage, with suppliers now facing losses worth millions of pounds.
Businesses that worked with Radley are still waiting to be paid weeks after the company fell into administration, with some owed substantial sums for stock already supplied.
One supplier is understood to be owed a six-figure amount, while another told trade publication Drapers they are out of pocket by tens of thousands of pounds.
Several suppliers have also been left with large amounts of unsold stock and raw materials, including leather, zips, buttons and buckles, which were bought in anticipation of future orders.
"It is so damaging for the long-term partners to the business as Radley treated them really badly [by not paying them]", a source close to the business told Drapers. "They don't deserve that."
The Radley group, which includes Radley & Co Limited, Laddie Bidco Limited and Laddie Midco Limited, appointed administrators from FTI Consulting on May 26 after struggling with weaker consumer demand and rising costs.
Shortly afterwards, American investment firm Gordon Brothers purchased the Radley brand and its intellectual property in a pre-pack administration deal.
However, the agreement did not include the retailer's store estate, putting all 21 UK locations on course for closure.
Major British retailer to disappear from the high street as 21 stores set to close in rescue deal | GETTYRadley's two flagship stores in Covent Garden and Glasgow, along with its 19 concessions, are expected to continue trading until September while remaining stock is sold off.
Some 42 staff members lost their jobs immediately following the collapse, with the fate of approximately 300 additional employees still uncertain.
A closing down sale launched today offering reductions of up to 50 per cent across Radley's entire product range, encompassing handbags, purses, wallets, footwear and accessories.
The discounts are available both at physical stores and through the retailer's website, with the company releasing additional warehouse stock to meet anticipated demand during its final trading period.
While the deal preserves the Radley brand, it does not include the retailer's store network | GETTY"There are some truly exceptional offers available across all categories. Everything has been reduced, including new season pieces," a Radley spokesperson said.
"We anticipate strong demand and expect key styles to sell through quickly. We would like to thank our loyal customers for their support over the years and invite them to shop early to avoid disappointment."
Radley recorded a pre-tax loss of £5.5million in its most recent financial year, while revenues fell from £72million to £65.8million.
FTI Consulting stated the administration followed "a sustained period of challenging economic conditions for the retail environment
| GETTYThe handbag specialist, recognised for its distinctive Scottie dog logo, had been owned by private equity firm Freshstream since 2016 but was reportedly put up for sale earlier this year amid mounting financial pressures.
FTI Consulting stated the administration followed "a sustained period of challenging economic conditions for the retail environment, including declining customer demand and increasing operating costs, all of which have had a negative impact on trading."