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Luella forced to shut up shop after backers pull the plug
Rosamund Urwin and Jim Armitage10 Nov 2009
ONE of Britain's top fashion labels has been forced out of business because of the recession.
Luella, whose fans include Cheryl Cole, Lily Allen and Princesses Beatrice and Eugenie, has stopped trading after its global licensee decided it would no longer bankroll the label.
Singapore-based retail group Club 21 pulled the plug on Luella Bartley's brand after the collapse last month of one of her main producers in Italy, Carla Carini. This meant orders for her spring/summer collection could not be met.
Bartley, 36, said: "This is a very disappointing situation for everyone involved with the brand. It is upsetting not to be able to protect jobs in this difficult economic climate."
It comes less than two months after the Luella collection won acclaim at London Fashion Week. The front row at the catwalk show included US Vogue editor Anna Wintour and MTV presenter Alexa Chung. Bartley said there was still a chance that the label could be saved. She is thought to be looking for a new investor.
"I hope that after we have survived this challenging time, the Luella girl can have an exciting future ahead of her, whichever incarnation she takes on next. We have a number of options open to us and are considering these over the coming months."
Bartley, best known for her party dresses, handbags and use of bold prints, was named Designer of the Year last year by the British Fashion Council. Her work is sold at Harvey Nichols, Liberty, Urban Outfitters and Net-a-Porter as well as at a flagship store in Brook Street, Mayfair.
According to the most recent accounts filed at Companies House, the company owed £306,000 at the end of last year. Its debts had risen from £248,000 the previous year. Turnover was estimated to be around £10 million last year.
Club 21, which is owned by fashion investor Christina Ong, is the parent company of VSQ, the distributor of Luella's ready-to-wear and accessories collections. VSQ made a pre-tax loss of £3.8 million last year.
Luella teamed up with department store Liberty this winter to launch its first Christmas grotto, and designed the West End store's window display.
Bartley studied at Central St Martin's and was an Evening Standard and Vogue journalist before turning to design and helping revive the fortunes of handbag maker Mulberry.
She lives in Cornwall and has three children with her partner, photographer David Sims.
