LONDON - Nicole Farhi, the upmarket fashion label, has run out of money and filed for a form of bankruptcy proceedings in the latest sign of trouble for British retailers.
Nicole Farhi, named after the designer who founded it in 1982, appointed the restructuring adviser Zolfo Cooper to take over the business and find a buyer, Zolfo Cooper said Wednesday. If no buyer can be found, the label may have to close.
Nicole Farhi was set up as part of the larger British fashion company French Connection. French Connection, which is run by Ms. Farhi’s ex-husband Stephen Marks, sold the label in 2010 to a private equity firm for about £5 million ($7.6 million). It was then sold again to the private equity firm Kelso Place Asset Management, which has been investing in other fashion labels, including the handbag designer Anya Hindmarch.
The label ran into trouble because of dwindling demand from consumers as some opted for cheaper fashion items amid a difficult economic environment. Ark Clothing, the toy and model retailers Modelzone and Dwell, a furniture retailer, are other British retailers that have faced difficulties recently.
Zolfo Cooper said that it was already in discussions with “a number of interested parties†with regard to the fashion house. Nicole Farhi, who has not been directly involved with the label for some time, might be considering buying the brand, newspaper reports said.
