UK fashion brand Ralph & Russo, which enjoyed a string of endorsements from celebrities including Ann Hathaway, Jennifer Lopez, Gwyneth Paltrow, Megan Markle and other celebrities, is on the verge of bankruptcy. It is reported that the reason for this decision was the impact of COVID-19, which caused financial problems. For the first time in the last six years at the end of January 2021, the brand was refused to participate in the high fashion week in Paris, but promised to show a new collection in July.
The brand is being sued by Candy Ventures, an investment company belonging to the luxury real estate mogul Nick Candy. The suit, filed in the High Court earlier this year, involves the disputed terms of a 17 million pound loan. In order to overcome the consequences of the crisis, the founders of the fashion house, Tamara Ralph and Michael Russo turned to independent business recovery specialist, Begbies Traynor Group and Quantuma Advisory.
The business will continue to operate throughout the administration process, and the administrators said Ralph & Russo remains “fully committed to supporting its incredibly loyal global clientele and staff as it transitions through this period.” Ralph said that for the last 11 years the brand “has been my love and complete passion. Together with my talented staff and master craftsman who are the heartbeat of the house, we have built a global luxury brand that I am incredibly proud of.” She added that in the last 12 months “we have experienced unprecedented trading conditions throughout the pandemic, which has put a tremendous strain on our business and retailers across the world. In spite of these difficulties, we have continued to serve our customers.” Ralph said the administration process will help to refinance the business, “and allow us all to do what we love best — creating for our women across the world. I would also like to reaffirm my commitment to the brand and to taking it to new heights in the future. My clients, staff and I have an unbreakable bond and we will come through this together.”