Radley has been bought out of administration by Poundland owner Gordon Brothers in a pre-pack deal that puts the handbag brand’s UK store estate at risk.
The distressed retail investor has acquired Radley’s brand and intellectual property assets, with FTI Consulting appointed as administrator to oversee the process.
However, the deal does not include Radley’s retail operations, which comprise 21 outlets across the UK, and will result in 42 job losses.
FTI Consulting said the administration followed “a sustained period of challenging economic conditions for the retail environment”, including declining customer demand and rising operating costs, which had hit trading.
Radley, which sells handbags, accessories and luggage, was founded by Australian designer Lowell Harder from a stall in Camden Market in the 1980s.
The business had been owned by private equity firm Freshstream since 2016 and was put up for sale earlier this year.
Next, which recently snapped up Russell & Bromley, had also been linked with a potential move for the premium leathergoods brand.
Radley reported a pre-tax loss of £5.5 million in the year to 26 April 2025, widening from a £1.7 million loss the year before. Turnover fell from £72 million to £65.8 million.
The retailer said sales had been affected by the closure of lossmaking stores in the US and softer international wholesale trading.
In its full-year accounts, Radley’s directors warned that pressure on consumers from higher energy bills and mortgage costs had created “material uncertainty” over the company’s ability to continue as a going concern.
Gordon Brothers has become an increasingly prominent player in distressed UK retail.
The Boston-headquartered firm acquired Laura Ashley out of administration in 2020 before selling it to Marquee Brands earlier this year. It also bought Poundland from Pepco for £1 last summer and has since pushed ahead with a major restructuring programme, including 149 store closures and around 2,200 job losses.
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