Luxury London jewellery retailer, Vashi, has recently faced a significant setback as it goes into liquidation. This news has sent shockwaves through the high-end jewellery market in the UK, highlighting the challenges faced by luxury retailers. Despite seeking funding at a valuation of £250 million, Vashi was unable to secure the necessary funds, leading to this unfortunate outcome.
With four stores and approximately 200 employees, Vashi had established itself as a prominent player in the London jewellery scene. Founded by Vashi Dominguez in 2016, the brand quickly gained recognition for its exquisite designs and high-quality craftsmanship. Its first store on Piccadilly had become a destination for discerning jewellery shoppers.
The decision to appoint insolvency practitioners from Teneo Restructuring as joint liquidators came after a winding-up petition filed by Canary Wharf Group, one of Vashi’s retail landlords. This suggests that the company did not have enough funding to continue operating through a conventional administration process. The support of over a dozen creditors in the petition further underlines the financial challenges faced by Vashi.
It is worth noting that Vashi had embarked on a £75 million fundraising campaign last year to support its expansion into the US market. The company’s website proudly highlighted its investors, including prominent figures from major global brands, private equity firms, and family offices. This indicates that Vashi had garnered significant interest and support in its growth plans.
However, despite showcasing impressive sales growth from 2016 to 2019, Vashi has unfortunately fallen victim to the volatile nature of the luxury retail market. This development raises questions about the sustainability of luxury brands, even in a thriving market. The closure of Vashi will undoubtedly leave a void in the London jewellery scene, impacting not only the brand itself but also its employees and loyal customers.
As Vashi has yet to comment on the reports of its liquidation, the full extent of the impact on the wider luxury jewellery market and London as a luxury shopping destination remains to be seen. However, it serves as a stark reminder of the challenges faced by luxury retailers and the need for constant adaptation and innovation in the industry.
Useful links:
1. Jeweller Magazine: Vashi on the brink of administration
2. Business of Fashion: London Jeweller Vashi Falls Into Administration
