Failed Creative Apparel bought out of administration

By

Nigel TAYLOR

Published
Mar 4, 2022

It was all looking so good for Creative Apparel late last year, with the construction of a new state-of-the-art eco factory set to increase business “fourfold". Fast forward to early March, and the UK clothing manufacturer has just been bought out of administration.

The pre-pack deal for Stockport-based Creative Apparel has seen its business and assets bought by Apparel Services for an undisclosed sum, reported BusinessLive.

Administrators Interpath Advisory said in a statement: “The company suffered trading losses in the wake of the Covid-19 pandemic, primarily due to production constraints from lockdown closures and subsequent social distancing restrictions. In addition, sales to one of its significant customers reduced materially during 2021.”

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But Rick Harrison, MD at Interpath Advisory, added: "We’re pleased to have been able to conclude these transactions, which safeguard the future of this innovative Stockport business, as well as preserving a number of jobs. We wish the new owner, management team and all employees the very best for the future.”

However, there has been no news on the construction of Creative Apparel’s new facility in Stockport, due to open this year.

Late last year, Creative Apparel announced it was to move to a “ground-breaking smart factory” allowing the company to target “green growth through sustainable style”.

Made Smarter, the government-led industry-backed technology adoption programme, supported the factory’s development with a £20,000 grant for a data and systems integration project. Creative Apparel had also secured a further £20,000 for a project that uses artificial intelligence (AI) tools.

At the time, its MD Phil Millar said putting technology at the heart of growth plans “will increase turnover fourfold within five years and create 50 new high value jobs”. 

Established in 1988, Creative Apparel employed over 80 people and produces around 50,000 items of clothing each week for the fast fashion industry, specialising in screen printing and embroidery. Although it appears not all those jobs will be saved, a total of 14 staff will ‘TUPE transfer' to Apparel Services Limited, a statement read.