Welsh designer Julien Macdonald’s eponymous brand has become another victim of the current economic climate. As a result of the turbulent market conditions, the brand had to file for bankruptcy.
The news was confirmed by bankruptcy consultancy FTS Recovery, which told industry magazine WWD that Alan Coleman and Marco Piacquadio have been appointed joint trustees for the luxury label.
In a press release, the company said Macdonald’s had lost “a significant part of its sales” following the bankruptcy of British retailer Debenhams at the end of 2020 and had been hit by the pandemic “which has impacted every aspect of retail”.
The bankruptcy trustees also pointed out that they are selling off stock and other assets to enable repayment to creditors, adding that no employees or existing contracts could be saved.
“Adding to the cash flow problems was the general cost of inflation, which impacted every aspect of the business,” said Coleman.
This comes amid the UK’s ongoing bid to fight inflation, which has reached record levels over the past 12 months and has sent interest rates soaring.
The liquidation comes a few months after Macdonald’s return to London Fashion Week
Macdonald is not the first to be badly affected by the current economic climate in Britain.
Recent reports suggested that Christopher Kane’s brand was also in trouble after filing for bankruptcy last month before its intellectual property and assets were bought out by founders Christopher and Tammy Kane last week.
For Macdonald, however, this move means the possible end of a remarkable career. The designer founded his brand in 1998 and won a number of celebrities such as Beyoncé, Jennifer Lopez and Kim Kardashian as advertising partners.
After a three-year hiatus, the label returned to London Fashion Week in February with a smashing show of laser lights, smoke and the designer’s signature sequined attire.
His current position is largely due to the demise of Debenhams, with whom Macdonald previously had a long-term cooperation deal.
This translated and edited post previously appeared on FashionUnited.uk