Aspinal of London, the iconic British retailer known for its luxury leather goods, has found itself at a crossroads amidst the ongoing COVID-19 pandemic. The company, which boasts a loyal customer base and a strong presence in the UK retail market, has been forced to reevaluate its business strategy in light of the unprecedented challenges posed by the global health crisis. With the closure of its physical stores looming, Aspinal of London is faced with the difficult task of restructuring its operations to ensure its long-term viability.
Employing 300 individuals and operating from 10 brick-and-mortar locations across the UK, Aspinal of London has long been a staple in the luxury retail sector. In addition to its physical stores, the brand also maintains a robust online presence and concessions in renowned department stores like Harrods and Selfridges. Despite the closure of its UK stores, the company’s webstore and concessions will remain operational, indicating a shift in focus towards e-commerce and premium concessions channels as part of its survival strategy.
To navigate the complex process of a Company Voluntary Arrangement (CVA), Aspinal of London has enlisted the expertise of Will Wright from KPMG to oversee the restructuring efforts. Earlier this year, KPMG was brought on board to explore funding options for the company, with the possibility of a sale also being considered as part of the restructuring plan. Wright recognizes the unique challenges faced by luxury retailers in a post-pandemic world, where foot traffic in physical stores has drastically decreased. The CVA proposal is viewed as a strategic step towards repositioning the business for future growth by capitalizing on its online and concessions channels.
Despite recent financial struggles, Aspinal of London continues to be a beacon of British luxury, with a rich history dating back almost two decades. Originally known for its exquisite stationery, the brand has since expanded its offerings to include high-end travel and leather goods, attracting a diverse clientele worldwide. Collaborations with renowned figures such as Giles Deacon and brand ambassador David Gandy, as well as its association with the Duchess of Cambridge, have solidified its status as a fashion powerhouse.
Nevertheless, the absence of international customers, particularly tourists and students, has taken a toll on Aspinal of London’s bottom line. Plans for overseas expansion in key markets like Shanghai, Dubai, and Abu Dhabi have been put on hold due to travel restrictions, posing a significant setback for the brand. Despite these challenges, Aspinal of London remains resolute in its commitment to weathering the storm and emerging stronger on the other side.
To know more about Aspinal of London and its latest updates, visit their official website here. For insights on the current landscape of luxury retail in the UK, check out this article here.
