American Apparel UK business goes into administration

Caitlin Morrison
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American Apparel's UK stores will stay open in the run up to Christmas (Source: Getty)

Americal Apparel's UK business has gone into administration.

Jim Tucker and Richard Beard of KPMG were appointed joint administrators of American Apparel (UK) Ltd and American Apparel (Carnaby) Ltd this morning, the accountancy firm said in a statement.

American Apparel (UK) and American Apparel (Carnaby) run the UK retail and wholesale operations of the US branded high street fashion retailer American Apparel. The UK business trades from 13 stores.

American Apparel’s brand and US business is being sold, after filing for bankruptcy last year, but KPMG said: "The UK and certain European operations are not part of the sale and are therefore likely to be wound down."

Tucker added: "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. Whilst 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."

London stores
Camden High Street Carnaby Street
Covent Garden Kensington High Street
Oxford Street Shoreditch
Westfield Stratford Westfield White City

Rest of the UK
Brighton Nottingham
Bristol Glasgow

In July last year, the retailer warned that it was in serious need of extra funding before admitting that it was likely to go out of business as it struggled with faltering sales and widening losses.

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