Italian womenswear brand Stefanel in administration

Retail Week understands administration and insolvency practitioners CVR Global have been appointed to wind the business up, and GCW has been tasked with assigning Stefanel’s stores on Regent Street and in Covent Garden.

The collapse of the womenswear retailer’s UK arm comes a few weeks after its Italian parent company applied for special administration under bankruptcy law.

Shares were suspended in the 60-year-old brand in early June, with Stefanel blaming heavy competition from fast-fashion and ecommerce for its dwindling sales.

The retailer looked to restructure its debt in 2017 through investor fund Attestor Capital, but the relaunch failed and it has been without a chief executive since July 2018.

A retail property source with knowledge of the discussions said there had been plenty of interest from other retail clients about taking up the spaces at 78 Regent Street and on King Street in Covent Garden.

Both Stefanel and CVR Global have been contacted for comment.

This is the second bricks-and-mortar retailer to enter administration this week, following the news yesterday that Bathstore had gone into administration, putting 531 jobs across its stores and head office at risk.