ONLINE fashion retailer mywardrobe.com was given a new lease of life yesterday after being bought out of administration through a pre-pack deal that will save 50 jobs.
A consortium of private investors have stepped in a bought the company from administrators Leonard Curtis, after it struggled under mounting losses and ran out of cash to continue trading.
It is the second time this year investors have stepped in to shore up the company after Andrew Curran, who founded the business with his former wife Sarah in 2006, led a group of investors that provided a cash injection in July. Yet the company rapidly ran out of funds and was unable to attract further investment.
“We have now done a complete reorganisation and a complete restructuring, which has allowed us to project to be a profitable business by 2014, and we have also been able to attract new investment based entirely on business and a new management team,” Curran told City A.M. yesterday.
As part of the company’s dramatic shake-up David Worby, who joined from Harrods last year, has stepped down as chief executive, with Curran taking over the reins.
He blamed mywardrobe’s problems on its decision to axe its menswear division and said that its focus on overseas expansion had “possibly been premature.”
The company is in the process of shutting its Camden headquarters and will continue to run the business from its offices in Nottingham, where all 48 staff have stayed on.
Curran said it was business as usual for customers and that all returns, refunds, exchanges continue to be paid for.