Deloitte Appointed as Administrators Amid Difficult Trading Conditions

  • Links of London enters administration
  • 350 jobs at risk
  • Deloitte appointed as joint administrators
  • Brand owned by Greek Folli Follie Group
  • 28 standalone stores in UK and Ireland
  • Seven concessions
  • No redundancies announced yet
  • Difficult trading conditions
  • Exploring options for sale or refinancing
  • Pulled out of US market in 2017 with £20.6m pre-tax loss
  • Sports Direct attempted to buy brand in September

British jewellery brand Links of London has entered administration, with around 350 jobs potentially on the line. Deloitte partners Matt Smith and Dan Smith have been appointed as joint administrators for the company. The Greek Folli Follie Group-owned brand sells luxury British jewelry, watches, cufflinks, and gifts in 28 standalone stores across the UK and Ireland and seven concessions. Other international operations under the Links of London name are not directly affected by this move. No immediate redundancies have been announced. Matt Smith stated that the company has faced challenging trading conditions affecting the entire retail sector, leading to the need for administration. The directors explored alternative solutions like a CVA, refinancing, or sale but were unable to finalize any deals due to ongoing cash flow pressures. They plan to continue trading and seek a potential sale; if not, they’ll liquidate assets for creditors’ benefit. Founded in 1990 and acquired by Folli Follie Group in 2006, Links of London was once known on UK high streets for nearly three decades.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the company’s financial situation, its ownership, operations, and the appointment of administrators. It also mentions previous attempts to sell the brand by the parent company and the involvement of Sports Direct owner Mike Ashley in a potential acquisition. The article is informative without any significant issues related to digressions, misleading information, or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about the administration of a British jewellery brand, Links of London, and its potential sale or liquidation. It also mentions the difficult trading conditions affecting the retail sector. However, it lacks in-depth analysis or exploration of long-term trends or possibilities, and does not offer significant actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: The financial difficulties of Links of London and its potential sale may impact the retail sector and other companies involved, such as Sports Direct.
Financial Rating Justification: The article discusses the administration of a British jewellery brand, which affects its employees and raises questions about its future. It also mentions the involvement of other companies like Sports Direct in potentially acquiring Links of London, indicating potential financial implications for those businesses.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. The situation described is a financial crisis involving the company Links of London entering administration, which may affect around 350 jobs.

Reported publicly: www.retailsector.co.uk