Herringbone and Rhodes & Beckett
Inventory clearance program with guaranteed financial result plus potential for upside.
summary-client Herringbone and Rhodes & Beckett
Gordon Brothers was engaged to run a closing down sale for Herringbone and Rhodes & Beckett to realise all existing inventory after the company went into administration. The transaction maximised proceeds whilst minimising the overheads of rent and staff costs, and returning the stores to broom clean condition. Meanwhile, the administrators continued to market the businesses and brand with a view to selling the IP and store footprint.
Gordon Brothers was able to provide the administrators a guarantee for net proceeds to be realised through the inventory clearance program. This provided the administrators with certainty of outcome and thus were able to compare their strategy against other purchase offers they had received. Dedicated Gordon Brothers retail staff ran the inventory sales program, and completed it in the agreed timeline. Net proceeds achieved were over and above what had been guaranteed, providing additional returns to the estate. The retail business of Rhodes and Beckett was sold free of any inventory to an offshore investor who relaunched the brand with new product. Additionally, a substantial number of the staff were able to transition to the new owners and keep their jobs.