Beggars banned from city centre
A MAJOR Bradford-based clothing company “which has been a distinct and historic presence in town centres across the country” has gone into administration.
Greenwoods Menswear Limited appointed Deloitte LLP as administrators yesterday but no redundancies have been announced at this stage, and it continues to trade.
The company employs 318 people, 292 of them working in more than 60 stores, 15 at the head office and 11 in its warehouse.
Founded as a hat shop by Sir Willie Greenwood in 1860, who opened the first branch in Bradford, the brand grew to have about 200 stores until numbers dropped dramatically in the 1990s.
Adrian Berry, who was appointed a joint administrator alongside Clare Boardman of Deloitte LLP, said: “We are currently assessing the options available to the company, including a potential sale of the business, and are continuing to trade it in the meantime.
“No redundancies are being announced at this stage and we are grateful to the employees for their support at this difficult time. This is a challenging time for the UK retail sector, which has affected the company.”
The administrators said that the company has been generating a turnover of around £20m.
Imran Hussain, Bradford East MP for Labour, suggested that “punitive business rates” for high-street stores have played a part and called for a “deep, fundamental reform” to create a system fit for this century.
He said: “I am deeply saddened to hear that Greenwoods, which has been a distinct and historic presence in town centres across the country, as well as an important part of Bradford, has entered administration, and I hope that a new buyer for the business can be found as quickly as possible without the need for redundancies across the stores and head office.
“Unfortunately it shows the challenges presented to our high streets in the face of online retailers, particularly when highstreet stores have to pay punitive business rates while large, out-oftown warehouses of online retailers pay less, despite higher profits, which demonstrates the need for deep, fundamental reform of the business rates system to adapt to the 21st century and give high streets a chance.”
Greenwoods sells formal and casual menswear, including shoes and accessories, in 63 stores and two concessions across the country. Its 1860 brand offers a formal suit hire service.
Its current headquarters are on Shipley Airedale Road in Bradford, having previously been at Albion Mills in the city.
The brand, which traditionally caters for men over the age of 45, experienced a revival recently when it launched a range of slimfitting formal wear targeted at younger customers.
But the company previously entered administration in 2009, when a Hong Kong-based investor bought most of its then 92 shops.
Before that time, it had reported an annual turnover of £25.9m and employed 579 people.
After the banking crisis in 2008, its cash position became increasingly difficult due to a reduction in credit terms from suppliers and the weakening pound, which made imports more expensive. The decline in consumer spending led to a significant sales fall at that time.
Twelve people have been issued with Criminal Behaviour Orders banning them from begging in Leeds city centre.
Inspector Andy Berriman said action was being taken against those who had been reported for acting aggressively.
He said the orders not only banned certain activities, but also required the subjects to undertake positive action such as rehabilitation programmes.