Luxury fashion brand DVF Studio enters administration
Tue, 26 May 2020 | ADMINISTRATION
DVF Studio, the UK business of fashion designer Diane von Furstenberg, has gone into administration and has announced the permanent closure of its flagship store on Bruton Street, Mayfair. In a letter to UK clients, von Furstenberg cited the pressure that coronavirus lockdown had taken on the business.
Along with its Mayfair store, the company has points of service at several prestigious UK department stores and operates an e-commerce platform. In February, the company announced that it was entering the rental market, launching its subscription service through its online platform dvflink.com. Its parent company is DVF Studio LLC.
In a statement, DVF Studio’s Finance Director Andrew Stokoe said: “DVF is resetting its business model and that, unfortunately, has resulted in a decision to close our store in Mayfair, London. We are continuing to invest in e-commerce and the DVF.com platform and remain committed to support our loyal customers in addition to our global network of franchise partners and wholesale accounts”
“We particularly look forward to welcoming our UK clients to our points of sale in Selfridges, Harvey Nichols and Harrods”, Stokoe added. In her letter to clients, meanwhile, von Furstenberg wrote: "It's with a lot of sadness that DVF UK had to close due to the very difficult present situation. DVF.com continues to be at your service and I will stay in touch to let you know of our future adventures.”
In its most recent accounts, to the year ending December 31 2018, DVF Studio UK reported fixed assets of £559,593, current assets of £3.2 million and net assets of £1.49 million, its profit after taxation was £124,052. However, the company derives all its revenue from parent company DVF Studio LLC, which reportedly made losses of $22.1 million last year.
View the latest distressed UK businesses here.
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