Sook, the online clothing retailer founded in 2013, is facing closure after falling into administration. The company, known for its trendy designs and focus on digital sales, saw a rapid rise to success with a £105 million IPO in 2021. However, financial difficulties following the IPO ultimately led to its sale to private equity firm Baaj Capital for £1.2 million in 2023. Now, administrators are working to find a solution for the company's future, which may involve a pre-pack insolvency.
F&S Recovery is poised to become the administrator for the struggling fashion retailer Sook , founded in 2013 by Adam Frisby. This move signals a potential pre-pack insolvency involving Sook 's private equity owner, Baaj Capital. Sook 's journey began with a focus on online sales, achieving rapid growth and a successful £105 million IPO in March 2021. However, the company's financial performance declined following the IPO, culminating in its sale to Baaj Capital for £1.2 million in March 2023.
The administration process involves the administrator utilizing the company's assets and business operations to repay outstanding debts to creditors. During this period, a 'moratorium' is implemented, preventing any legal action against the company. The administrator's primary objective is to prevent liquidation (closure) and, if successful, allocate as much of the company's remaining assets as possible towards debt repayment. Within eight weeks, the administrator must submit a statement outlining their proposed plan for the business's future to creditors, employees, and Companies House. This plan is then presented at a meeting where stakeholders can approve or suggest amendments. A Notice of Intention serves as a formal notification to relevant parties about the company's intention to enter administration. This document, typically submitted to court by the directors, aims to prevent liquidation while the company seeks to rectify its financial situation. Sook's administration adds to a growing list of retail casualties in 2024, with 27 retailers across various sizes ceasing operations, impacting 886 stores and 17,939 employees, according to the Centre for Retail Research. Other notable closures include Tile Choice, a Midlands-based flooring retailer, and LloydsPharmacy, once the UK's second-largest community pharmacy chain. The rise of online shopping, coupled with economic headwinds, have contributed to the challenges faced by many retailers on the high street. Furthermore, the British Retail Consortium predicts that the Treasury's increase in employer National Insurance Contributions from April 2025 will cost the retail sector £2.3 billion.
Sook Administration Insolvency Retail Fashion Online Shopping High Street UK Economy
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