Downfall of designer adored by Kate
Kate’s beloved fashion brand Orla Kiely is latest victim of the bloodbath on Britain’s high streets
‘Staff just burst into tears’
DESIGNER brand Orla Kiely – often worn by the Duchess of Cambridge and sister Pippa – shocked the fashion world yesterday when it announced it had ceased trading.
Workers said they were escorted out of the building earlier this week just moments after being told by boss Orla Kiely, 55, that they were losing their jobs.
Its stores – on the King’s Road and in Seven Dials, London, and in Kildare, Ireland – have closed.
A small selection of accessories and homeware will continue to be sold through department stores Debenhams and John Lewis.
Set up in 1995 with her husband Dermott, the Dublin-born designer’s brand is best known for its vintage 1970s-inspired prints. At its height it turned over more than £8million.
Besides Kate and Pippa and their mother Carole, famous faces such as model Alexa Chung and actresses Keira Knightley and Sarah Jessica Parker have worn the brand’s clothes.
Ironically, the designer is currently the subject of an exhibition – Orla Kiely: A Life In Pattern – at the capital’s Fashion and Textile Museum which ends on Sunday.
But the demise of her business is only the latest in a string of major blows to Britain’s retail sector.
Department store group House of Fraser went into administration in August, and Toys R Us and electronics retailer Maplin also collapsed earlier in the year.
A source said: ‘It wasn’t sent out in an official email or anything but was spread through word of mouth.
‘Around lunchtime we were all called together where [Kiely] told us we were all out of a job.
‘We’re paid on the 27th of each month and we were told the company can’t pay us for the past three weeks and we’d have to try and file for redundancy. Some people just burst straight into tears.
‘Chief designers just grabbed their bags and walked straight out without saying anything. We were then escorted out of the building. None of us saw this coming. They closed off the website the other week and said there was an issue with the payment gateway.
‘But they must have known what was going on … we feel like we’ve been done over. Now I’m struggling to find the money to pay the rent. People were just crying in the pub. It’s devastating.’
A message on the company’s website read: ‘Kiely Rowan Plc, the retail and wholesale fashion business of Orla Kiely, has ceased trading as of Monday 17 September 2018. This means our retail stores in London and Kildare and our online business have been closed.
‘We apologise for any inconvenience caused. Orla Kiely’s Home and Design licensing business will not be impacted, and its selection of accessories and homewares will continue to be sold through its distribution partners.
‘Thank you for embracing our brand and designs throughout the years and for your ongoing support. Orla, Dermott and the team.’
Yesterday, a call to its head office in south London went unanswered.
Irish media quoted the directors of the holding company blaming ‘various challenges that have faced the company over the past few years, both in the UK and abroad’. According to documents filed with Companies House, turnover in the year to March last year increased from £7.2million to £8.3million. It noted that retail ‘remained steady’ and that directors planned to expand in the US. However, the files also indicate the firm may have been struggling, as it was operating with a heavy debt burden running into the millions. Bank loans and overdrafts were approaching £3million and it owed trade creditors nearly £2.5million.