Prominent Europe is looking at winding down its business as a supplier of the hard-hit men’s apparel retail sector.
British media reported last week that the U.K. supplier, which owns men’s wear brand Chester Barrie, advised employees of its plan to effect an orderly shutdown over the next year, which would give the company time to clear through any remaining orders and settle its bills.
In a letter, Prominent Europe notified its 40-member staff that employees have been placed into “collective consultation,” the British equivalent of a WARN notice in the U.S. alerting workers of potential layoffs, Drapers reported.
The letter also stressed how the company has been “severely impacted by the unprecedented changes seen in the retail clothing market,” it added.
Men’s suiting specialist TM Lewin in July shut all stores as part of a pre-packaged administration process on June 30, citing the effects of the coronavirus pandemic. The company has since embraced an online-only model. Moss Bros., another men’s wear retailer, avoided administration by winning creditor approval in December to enter into a company voluntary agreement, an insolvency procedure allowing the company to pay creditors over a fixed period. Moss Bros. is set to launch a new monthly subscription rental service called Moss Box, powered by apparel rental technology platform CaaStle.