Menswear supplier Morrison McConnell appoints administrators

UK menswear supplier Morrison McConnell has been forced into administration, citing Brexit issues for its failure.

BK Plus has been named as administrator to find a buyer for the company, which supplies a range of menswear, including the Viyella heritage brand, to independent shops across the UK and Europe.

A statement from BK Plus seen by TheBusinessDesk said: “In response to evolving retail trends and the increasing shift towards online purchasing, Morrison McConnell Limited made significant investments in new websites. However, the company has faced considerable challenges due to Brexit, with import duties on EU sales and increased freight and container costs leading many customers, both wholesale and direct-to-consumer, to seek alternatives.”

The Riddings, Derbyshire-based company continues to trade while BK Plus “actively seeking a buyer, following initial marketing efforts in early May”.

Currently, Morrison McConnell employs four staff members following two redundancies made immediately after the appointment of the administrators.

In its last set of accounts to the end of December 2022, Morrison McConnell had assets of just over £605,000, but owed creditors some £953,000.

At the time, a statement in the accounts had been upbeat and said: “The directors have taken steps to improve the financial results of the company, with the launch of multiple new websites, directly aimed at the higher margin ‘direct to consumer’ sector.

“The continuous introduction of seasonal collections covering all the brands within the company’s portfolio will drive the wholesale business, with various collaborations and key accounts planned into 2024 to celebrate [Viyella’s] 240th anniversary.

“Product development is already under way to address the company’s historic sales imbalance between strong Autumn/Winter season and weak Spring/summer performance, with a unique proposition within the company’s operating sector becoming available to pre-order during Q3 2024.

“With these actions in place, forecasts have been prepared for the next 12 months and the outlook is positive with both turnover and contribution improving.”