Jewellery maker Links of London enters administration, 350 jobs at risk (updated)

Folli Follie SA

09/10/2019 15:06

(Adds details on employees, shops, administrator comment,
background)
    Oct 9 (Reuters) - Greek jewellery maker Folli Follie's
 HDFr.AT  Links of London appointed Deloitte as an administrator
on Wednesday, putting about 350 jobs at risk and adding to the
list of high-profile retailers to run into trouble on Britain's
high street.
    Links of London was founded in 1990, offering unisex
jewellery and lifestyle accessories, with luxury products
designed after London's art, music, and film scenes at the time.
    Links of London said on its website it was unable to process
any online sales, but directed people to its stores.
    "The Company has had to contend with difficult trading
conditions that have impacted the whole retail sector," joint
administrator Matt Smith said in a statement.
    Smith added that the directors had been seeking alternative
solutions, including a company voluntary arrangement (CVA),
refinancing or sale, but were unable to ink such a deal.
    CVAs allow retailers to avoid insolvency by offloading
unwanted stores and securing lower rents on others and reach a
compromise with creditors. They have been adopted by other
British retailers including fashion chain New Look.
    Britain's retail sector is still reeling from the collapse
of well known names such as Debenhams, music store HMV and
department store House of Fraser.
    Deloitte said it will continue to run Links of London and
will explore options for a sale. It also said no job losses were
being announced at this stage and the company's international
operations were not directly affected.
    Links of London, which sells luxury jewellery, watches,
cufflinks and gifts, has around 28 standalone stores across the
UK and Ireland and seven kiosks.
    The jeweller's Greek owners have also faced their share of
troubles. Folli Follie in August mandated Deloitte and Savigny
Partners to look into the possible sale of Links of London,
which it bought in 2006.
    Talks between Folli and its creditors over a rescue plan are
at a "critical" stage and are expected to conclude in the coming
weeks, its chairman said last month.  urn:newsml:reuters.com:*:nL5N25X3VA
    Folli has been in turmoil since a hedge fund report in May
last year questioned its accounting. The company published its
delayed audited 2017 statements in July, showing it overstated
annual revenue by more than 1 billion euros ($1.10 billion), and
presented an alternative overhaul scheme to bondholders after a
previous proposal collapsed.  urn:newsml:reuters.com:*:nL8N24H0OW

 ($1 = 0.9107 euros)

 (Reporting by Tanishaa Nadkar and Noor Zainab Hussain in
Bengaluru; Editing by Shailesh Kuber and Shounak Dasgupta)
 ((tanishaa.nadkar@thomsonreuters.com; Within UK +44 20 7542
1810; Outside UK +91 80 6749 1691; Twitter: @TanishaaNadkar;))