Analysis: Collapsed fashion brand Nicole Farhi's likely suitors

Department stores

With Nicole Farhi already sold in concessions across House of Fraser, Harvey Nichols and Selfridges, there’s a strong chance that the 31-year old brand could be snapped up by a department store. Though it doesn’t stock the label, Debenhams is likely to express an interest in the brand. The department store group has a history of buying brands out of administration – it snapped up the brand and stock of Principles in 2009 after the business entered administration; a year later it bought footwear retailer Faith from administrators. The brand could easily fit into the high profile ‘Designers at Debenhams’ collection, which includes offers from designers such as Jasper Conran, Julien Macdonald and Henry Holland. Harvey Nichols and Selfridges could also be contenders. Retail Week has learnt that House of Fraser will not be throwing its hat into the ring.

Private equity

It’s likely that private equity firms will circle Nicole Farhi. Retail Week understands that several had been contacted by the brand’s former owners in a bid to sell the brand in recent weeks. Private equity firms continue to invest in fashion brands. L Capital, the private equity arm of luxury giant LVMH, was reported to have recently looked into taking a stake in fashion retailer Joules. J Crew, which is making its UK debut with a store in London later this year, was bought by two US private equity firms Leonard Green & Partners and TPG Capital in late 2011. Better Capital bought Jaegar last year and could be a potential suitor for Nicole Farhi, while Sun European Partners has been snapping up fashion brands including Jacques Vert and Bonmarche, although both are low price point high street retailers.

Sports sector

High-street sports retailers may not immediately spring to mind when thinking of potential suitors for Nicole Farhi but the recent acquisitive behaviour of the two major players in the sector indicate that they too could be eyeing the brand. Nicole Farhi would fit into Sports Direct’s premium and luxury lifestyle division, which includes Cruise, a high-end indie selling designer brands such as Ugg and Vivienne Westwood, that it snapped up in 2011, and Flannels, an indie it bought a majority share in a year ago. Rival JD Sports, which also threw its hat into the ring for Cruise, could be a potential buyer. While its portfolio isn’t as high-end as Sports Direct, it continues to be on a brand and retailer spending spree, having bought footwear etailer Cloggs and Blacks Leisure in the past couple of years, and more recently, fashion chain Ark.  

Overseas suitors

China continues to hanker after British luxury products and this feeds through to Chinese companies snapping up British brands. Luxury British heritage brand Aquascutum was acquired out of administration in 2012 by a subsidiary of Hong Kong-listed YGM Trading, which already owned the rights to the brand in Asia.

Hong Kong group Trinity bought British tailor Gieves & Hawkes from fellow Hong Kong firm Wing Tai Properties last year. Premium brand Pringle of Scotland has been owned by knitwear manufacturer SC Fang & Sons since 2000.

Nicole Farhi

Finally the co-creator of the brand itself might try and salvage her label. Rumours abound that the entrepreneur could take control of the business.