British fashion brand Ralph & Russo enters administration after Covid hits sales
British luxury fashion brand Ralph & Russo has collapsed into administration after the coronavirus pandemic decimated sales.
Ralph & Russo has appointed Begbies Traynor and Quantuma as administrators to investigate “all possible options” for the company.
In a statement this afternoon, the company’s co-founder Tamara Ralph said trading conditions during the pandemic had put “tremendous strain” on the business.
“I have been assured that this process will help refinance the business and allow us all to do what we love best – creating for our women across the world,” Ralph said.
“I would also like to reaffirm my commitment to the brand and to taking it to new heights in the future”.
The aim of the administration is to restructure the business, and it will continue to operate throughout the process, Ralph & Russo, which has stores in Mayfair and Harrods, said.
Last week, Sky News – which first reported the news of the administration – revealed that the couture label, which designed the Duchess of Sussex’s engagement gown, had deferred salary payments to employees.
Ralph & Russo told workers last month that it was unable to pay their salaries due to a slump in sales.
The company was founded in 2010 by Ralph and her then-boyfriend Michael Russo, and has secured the backing of some of the UK’s wealthiest investors including John Caudwell, the founder of Phones 4U, and property developer Nick Candy.
As well as its London stores, Ralph & Russo has boutiques or concessions in Paris, Monte Carlo, Istanbul, New York, Dubai, Doha and Shanghai.