Online menswear supplier falls into administration and seeks buyer
Mon, 10 Jun 2024 | ADMINISTRATION
An East Midlands-based online menswear supplier is seeking a buyer after falling into administration. Morrison McConnell Limited, which operates the Viyella-online.co.uk website, sells menswear, including clothing by heritage brand Viyella, to consumers and independent clothing retailers across the UK.
Richard Tonks and Kim Richards of BK Plus have been appointed as joint administrators of the company, which operates from an office in Riddings, Derbyshire. Following their appointment, the joint administrators are continuing to trade the company while actively seeking a buyer.
The company undertook initial marketing efforts in May, but ultimately fell into administration. Two members of staff were made redundant immediately upon the appointment of the joint administrators, with four members of staff remaining.
In a statement, the administrators said: “In response to evolving retail trends and the increasing shift towards online purchasing, Morrison McConnell Limited made significant investments in new websites.”
“However, the company has faced considerable challenges due to Brexit, with import duties on EU sales and increased freight and container costs leading many customers, both wholesale and direct-to-consumer, to seek alternatives.”
In its most recent accounts, for the year ending December 31 2022, Morrison McConnell Limited’s fixed assets were valued at £53,433 and current assets at around £606,000. However, at the time, it owed creditors approximately £953,162, with its net liabilities amounting to £293,821.
In a statement with the accounts, the company’s directors stated that it had undertaken steps to improve its financial results, including launching several new websites “directly aimed at the higher margin ‘direct to consumer’ sector.”
Directors added that product development was also underway to address the firm’s “historic sales imbalance between strong Autumn/Winter season and weak Spring/Summer performance”.
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