Hipster fashion chain American Apparel has gone into administration and KPMG appointed as administrators for its 13 UK stores.
Jim Tucker and Richard Beard of KPMG were appointed joint administrators for American Apparel (UK) and American Apparel (Carnaby). The companies run the UK retail and wholesale operations of the US retailer.
In a statement KPMG said American Apparel’s brand and US business was being sold, though the UK and certain European operations were not part of the sale and were therefore likely to be wound down.
Tucker said: “The American Apparel group has been experiencing strong retail headwinds, which has culminated in the US parent deciding to stop inventory shipments to the UK. The UK business has experienced similar trading difficulties, resulting in the appointment of administrators.
“The 13 UK stores are well stocked and will continue to trade as usual in the lead up to the peak Christmas trading period. While the UK business is not part of the US sale, a number of the UK stores are in prime high street locations, and we will also aim to sell individual stores following the Christmas trading peak.”
All the UK stores continue to trade and no redundancies have been made.
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