Two BHS suppliers collapse into administration causing 350 job losses

Dilip Dattani and Patrick Ellward of RSM Restructuring Advisory have been appointed as joint administrators today following the collapse of the two clothing suppliers, which have employees in Derbyshire, Nottingham and London.

A statement from RSM said the administration of embattled department store retailer and “major customer” BHS had been “the main reason for the demise” of the two suppliers.

Dattani said: “The administration of BHS has added to the challenge of operating within a fiercely competitive market for seasonal products.

“This has left the directors with little choice but to place the companies into administration.”

As a consequence of Cuk Clothing and Courtaulds Brands entering administration, 350 out of the 380 employees across the two suppliers have been made redundant – 320 job losses in Derbyshire, four in Nottingham and 26 in London.

Dattani said RSM was assisting effected employees “with their claims to the Redundancy Payments Service” and was in talks with “key customers to assess their ongoing orders and delivery schedules”.

The remaining 30 employees will assist administrators with outstanding orders for the two suppliers, but a spokesman for the companies said they could offer existing staff “no guarantees” about the security of their jobs.

Cuk Clothing and Courtaulds Brands, whose products include underwear, nightwear, jackets and coats are both wholly owned subsidiaries of holding company Kadima Holdings.

This is a fresh blow for BHS, which entered administration last month as revealed by Retail Week and whose 11,000 employees’ jobs are at stake if the retailer isn’t sold.

Former Next, Mothercare and Burton executive Greg Tufnell is understood to be spearheading the latest rescue bid for the embattled retailer, while Matalan founder John Hargreaves and Sports Direct owner Mike Ashley are also front-runners to take on the beleaguered department store chain.