Nicole Farhi was founded in 1982 – but collapsed into administration this month. Photograph: Luke Macgregor/ReutersThe luxury British fashion label Nicole Farhi has been saved by the Administration after being purchased by Maxine Hargreaves-Adams, daughter of Matalan founder John Hargreaves.
The sale includes all six, nine stores in the United Kingdom and Ireland franchises and parts wholesale and online business, protecting about 140 jobs in United Kingdom. Financial details of the agreement were not disclosed.
Hargreaves-Adams, who was for a time head of Womenswear at Matalan, also bought British clothing label that Fenn Wright Manson out of Administration last year and last month invested jointly with his father in another British brand, damsel in a dress.
Nicole Farhi was founded in 1982 by Nicole Farhi and her former husband, French connection boss Stephen Marks. Collapsed in this month's management, with administrators Zolfo Cooper said that the decline in high street spending coupled with rising costs led to "increased financial pressures on business".
They also said that the label had been captured between polarizing question high-level luxury or cheap high street brands such as Primark.
Hargreaves-Adams described Nicole Farhi as "an iconic British brand and much loved". A spokesman said that Hargreaves-Adams was "very interested in supporting British brands and sees potential in Nicole Farhi. He added that he would be the focus on quality and standards and take it back to its origins in British luxury.
Highlighted the investment that Hargreaves-Adams had done in Fenn Wright Manson, with three new shops opening since he bought the brand.
Peter Saville, a partner at Zolfo Cooper – who also sold Fenn Wright Manson to Hargreaves-Adams – said that the deal preserved "a well known retail brand" by Nicole Farhi, who had drawn interest from more than 50 parties and about 10 serious bidders.
"The reason that we've had so much interest was the perception that is a high-end brand that is difficult to build that. The challenge is that you have to have the range to match it. "
It would be important for the label to get the next pair of ranges of right and to make sure that customers felt they were getting value for money in terms of quality, he added.
The company had revenues of ￡11. 8 m, but made an operating loss of ￡ 2. 3 m for the year to January 2011, according to the most recent available accounts at Companies House.
French connection sold the brand in 2010 for 5 million pounds. The company later had two separate private equity owners. Kelso place Asset Management has promised to invest more than 15 million pounds in business when he took over in January last year.
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