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Published
Oct 10, 2019
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Asian clothing brand Khaadi rescued by pre-pack deal

Published
Oct 10, 2019

Asian clothing retailer Khaadi has been acquired out of administration in a pre-pack deal that saves the majority of its stores and jobs.


Khaadi


Founded in the UK in 2013, the retailer trades from 10 stores nationwide, including stores in high-profile shopping centres such as Westfield Stratford, Westfield Shepherds Bush, Brent Cross, Bull Ring Birmingham, Trafford Centre Manchester and Trinity Leeds.

Six of the 10 stores will continue trading after a sale was agreed by administrators, Keith Marshall and Gareth Harris of RSM with Weaves UK Trading Ltd. 

The deal will also preserve the majority of the nearly 100 jobs the company had prior to administration.

Four underperforming stores have closed, resulting in some redundancies.

Khaadi’s management team, which started the business, will remain in place.

James Moore, a partner at insolvency specialist Weightmans, said: “Sadly failures on the high street remain common as the retail sector faces massive structural changes but we are glad that Khaadi has survived. 

“This was a complex transaction that demanded expertise from across our specialist practice areas, safeguarding the majority of roles at Khaadi and leaving a more streamlined and sustainable business.”

Khaadi’s administration underlines just how tough trading conditions are for British retailers in an uncertain climate marked by low consumer confidence, high costs and increased competition.

This year alone, more than 30 medium and large retail businesses have collapsed into administration, including many fashion chains such as Karen Millen, Jack Wills, Gerry Weber UK, Stefanel, Debenhams, LK Bennetts and Pretty Green. 

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