Luxury Brand Consolidates Business on E-commerce and Concessions
- Aspinal of London agrees on closing all 10 stores due to company voluntary arrangement (CVA)
- 75% of creditors approved the decision
- No store has reopened since lockdown lifted on June 15th
- Founded in 2004, employs over 300 staff
- Ecommerce and concessions at Harrods and Selfridges remain operational
- Operating losses increased to £4m in 2019 from £1.7m the previous year
Aspinal of London, a luxury goods brand, has agreed to a company voluntary arrangement (CVA) with its creditors, leading to the permanent closure of all 10 stores. The decision was approved by 75% of creditors post-lockdown. None of the stores have reopened since June 15th. Founded in 2004 and employing over 300 staff, Aspinal also operates an ecommerce platform and has concessions at Harrods and Selfridges, which will continue to function. Will Wright, KPMG’s proposed CVA nominee, acknowledged the challenges posed by reduced footfall in high street stores. He stated that the CVA proposal allows Aspinal to refocus on its core online and premium concessions channels for a stable future. Operating losses increased from £1.7m (2018) to £4m in 2019.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Aspinal of London’s decision to close its stores due to financial challenges and focuses on the company’s plans for refocusing its business on online and premium concessions. It also includes relevant details such as the number of creditors who approved the CVA, the impact of Covid-19 lockdown, and the company’s operating losses.
Noise Level: 3
Noise Justification: The article provides relevant information about a company’s decision to close its stores due to financial challenges and the impact of Covid-19 on high street retail. It also mentions the company’s plans for refocusing its business on online and premium concessions channels. However, it could provide more analysis or context on the broader implications of this development in the luxury goods industry.
Financial Relevance: Yes
Financial Markets Impacted: Aspinal of London’s creditors and its employees
Financial Rating Justification: The article discusses a company voluntary arrangement (CVA) that impacts Aspinal of London’s stores, which is related to financial decisions and operations. It also mentions the operating losses of the company, affecting its creditors and employees.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.