The recent closure of The Vampire’s Wife and sale of Roksanda highlight the grave challenges faced by independent British fashion designers. The collapse of Matches and Farfetch has exacerbated financial difficulties for these brands. Cashflow issues and unpaid invoices are significant hurdles.
- Last week, The Vampire’s Wife, an occasionwear brand, announced its closure following wholesale market upheavals, signalling turbulent times ahead.
- Similarly, luxury label Roksanda entered pre-pack administration, attributed to volatile market conditions and the collapse of key stockist Matches.
- The demise of Matches has led to a reduction in wholesale partners, impacting the cashflow and operations of smaller brands.
- Industry experts warn that without strategic adjustments and securing investments, more independent labels may face administration.
The chain of events started with The Vampire’s Wife, a women’s occasionwear brand founded by Susie Cave, announcing its decision to cease trading due to market disruptions. Despite experiencing a period of growth, the brand faced insurmountable challenges from the upheaval in the wholesale market.
In May, luxury womenswear label Roksanda was sold to The Brand Group in a pre-pack administration managed by FTS Recovery. This sale, caused by ‘recent volatile market conditions,’ came shortly after Frasers Group placed Matches into administration, a key stockist for many independent brands.
The collapse of Matches has left a substantial gap in the market, as Frasers Group only acquired the intellectual property, excluding staff and stock. This has intensified difficulties for designer brands that relied heavily on Matches for sales, with Farfetch’s decline further complicating the marketplace.
Industry insiders stress the importance of protecting cashflow and revisiting wholesale strategies to adapt to these challenges. FTS Recovery’s director, Marco Piacquadio, warned of ‘dark days ahead for the UK fashion industry,’ emphasizing that smaller brands are hit hardest by increased costs, reduced sales, and unpaid invoices.
These concerns are echoed by a source from a fashion industry body, highlighting that up to 40% of sales for some brands came from Matches, with the lack of payment for previous deliveries creating fiscal strain. The uncertainty extends to making payroll for upcoming months, a situation facing Roksanda among others.
Moreover, the damages go beyond overdue payments. Loss of a primary sales channel has been exacerbated by broader market declines, including Net-A-Porter and Farfetch, and issues like VAT-free shopping limitations.
This turmoil, dubbed ‘death by a thousand cuts,’ signals more potential bankruptcies or forced acquisitions unless brands become ‘investment-ready.’ Suggestions from industry figures include managing wholesale agreements more tightly, reducing dependency on loans, and ensuring payment for goods before further production.
Juls Dawson, managing director of a fashion agency, noted the shrinking number of wholesale partners, further affected by political uncertainties like the impending general election that could dampen consumer confidence.
A manufacturer collaborating with brands like Roksanda mentioned a broader industry contraction yet saw opportunities for strategic resets in wholesale practices. They suggest a cautious approach: producing less, controlling stockists, and securing payments upfront as crucial steps for survival.
The current landscape demands strategic foresight and adaptability for independent fashion labels to endure in the changing market.
