Crowdfunded A Suit That Fits unit fails
The trading division of A Suit That Fits, DW Clothing, has gone into liquidation despite the tailoring company having raised £1.5 million via crowdfunding.
Director Daniel Warwick beamed a generally tough retail backdrop, as well as price rises linked to the impact of the Brexit vote and the specific issue of a Nepal earthquake which has affected production.
The company owes creditors over £2 million, The Times reported, which includes a debt to linked company DKSG Bespoke, through which the crowdfunded investment was channelled. The newspaper said that as of Tuesday this week, the small investors who had subscribed to the crowdfunding drive hadn’t been informed of the failure.
It also said that a new company owned by Warwick, called Tailored Franchises Limited, is trading using the A Suit That Fits “brand, customer list and website.”
DW had acquired the seven year-old business in 2013 in a pre-pack administration that left unsecured creditors with debts of over £0.5 million. Warwick took over in 2016.
In response to concerns about the realignment of the assets and the new company, Warwick told The Times that a transfer of all of his shares in Tailored Franchises Limited to the still-solvent DKSG Bespoke, which crowd backers own equity in, was “in process”.
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