Fashion Label Nicole Farhi Is in Bankruptcy

A model wears an outfit by Nicole Farhi during the London Fashion Show in 2007.Alastair Grant/Associated PressA outfit shown during the London in 2007.

LONDON – Nicole Farhi, the upmarket , has run out of money and filed for a form of bankruptcy proceedings in the latest sign of trouble for British retailers.

The company, named after the designer who founded the label in 1982, appointed the restructuring adviser Zolfo Cooper to take over the business and find a buyer, Zolfo Cooper said on Wednesday. If no buyer can be found, it may have to close.

Nicole Farhi was set up as part of the larger company French Connection. French Connection, which is run by Ms. Farhi’s former husband, Stephen Marks, sold the label in 2010 to a private equity firm for about £5 million ($7.6 million). It was then sold again to the private equity firm Kelso Place Asset Management, which has been investing in other , including the handbag designer Anya Hindmarch.

Nicole Farhi has six stores and also sells its goods in including London’s Selfridges. It was founded as a fashion label but has since expanded into accessories, housewares and restaurants.

The label ran into trouble because of dwindling demand from consumers as some opted for less expensive fashion items during a difficult . , the toy and model retailers Modelzone, and Dwell, a , are other British retailers that have faced difficulties recently.

Zolfo Cooper said it was already in discussions with “a number of ” with regard to the . Nicole Farhi, who has not been directly involved with the label for some time, might be considering buying the brand, newspaper reports said.

Article source: http://dealbook.nytimes.com/2013/07/03/fashion-label-nicole-farhi-is-in-bankruptcy/

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