Be lucky to get £530k for it too

Ralph & Russo collapsed with £53m of unsold stock, the administrators of the celebrity fashion label have revealed as they court new owners.

The assets offer “an immediate commercialisation opportunity” for a buyer, according to marketing documents issued by administrators to potential bidders ahead of a deadline next week.

The difference between such high end clothes and the stuff pumped out by Primark isn’t as all that great as you might think. By far that largest part of that “value” of the stock is the branding costs that get people to pay high prices for it. The actual cloth and stitching and all is better, yes, but not all that much.

And if the brand is gone, along with all that spending upon making people think it’s high value, then the clothes are worth…..

9 thoughts on “Be lucky to get £530k for it too”

  1. At a Neiman Marcus store I once checked (probably in the ’80s) the tags on trench coats branded Burberry, Aquascutum, London Fog (Burberry lookalike), and Misty Harbor (Aquascutum lookalike). All manufactured in South Korea. All the same fabric mixture. The workmanship appeared to be identical. The prices, however, on the original name brands were far higher.

  2. The Meissen Bison

    And if the brand is gone, along with all that spending upon making people think it’s high value

    It doesn’t follow that the brand is “gone” or that a buyer couldn’t revive promotional activity and resume production.

    However, without knowing anything about this business, I’d say that £53m of stock is a collosal amount and it would be interesting to know what the rate of stock turnover had been and over what period this volume had accrued.

    Assuming that we’re talking about a high fashion brand, then previous seasons’ designs should have been steeply discounted rather than retained in inventory at their original valuation.

  3. “The difference between such high end clothes and the stuff pumped out by Primark isn’t as all that great as you might think.”
    True. Once owned a Pierre Cardin trenchcoat style raincoat, cost an arm & a leg. Sent it for dry cleaning & the useless sods managed to lose one of the epaulettes. But, thanks to connections in the Paris rag trade, was able to discover who made it. Company in Nottingham. Got in touch with the manager. Couldn’t help me. They’d finished that run two years previous. Didn’t even have any fabric left over. Their current production run was for industrial overalls.

  4. Never heard of this R&R outfit. But brands can be revived. Cussons went bust but their brands survived, though Imperial Leather is a bit down market. Nivea was an orphan and has been revived as a bit more upmarket.
    Someone paid for the name Kodak and Polaroid, selling stuff nothing like the original.

  5. Chance to sell at even higher prices: “Last ever R&R clothes! Buy a piece of history before it’s gone!”

  6. Like Philip I’ve never ‘eard of ’em. But I wonder whether R & R is close enough to RR to let someone sell them as the Rolls Royce of clothing. From a street market or pop-up shop, presumably.

  7. Had a look at the R&R website. If that £53m is based on full sale price, Tim’s estimate of the actual value might be generous.
    Jumpers for £1500, blouse for £600, jackets for £2-3k.

  8. Back in the 80s, I was visiting Hong Kong. Stanley market had stalls selling Dior etc dresses – not knock-offs, but ‘extras’ produced at the end of a run of 200 or so. Of course, they couldn’t sell them with the labels, but that was no problem, because the adjacent stall had a vast array of every top end label, which they would happily sew into your garment for a small consideration.

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