British menswear retailer TM Lewin has fallen into administration for the second time in less than two years.
The company, founded over 120 years ago in London, has appointed Will Wright and Chris Pole from Interpath Advisory as joint administrators.
Like many formalwear retailers, TM Lewin was hit hard during the pandemic by store closures and the sudden cancellation of large events such as weddings and the Royal Ascot.
The company launched an insolvency process in July 2020 and announced it would be closing all 66 of its stores as it repositioned itself as an online retailer trading exclusively in the UK. The move resulted in 600 job losses.
Since then, the retailer’s trading has continued to be impacted by pandemic restrictions as large events and social gatherings continued to face restrictions and many Brits continued to work from home.
Continued lull in formalwear demand
“While social distancing measures were lifted in early 2022, the cumulative impact on the company’s cashflow was such that, after exploring options for the business, the decision was taken to place the company into administration,” Interpath Advisory said Friday.
Will Wright, head of restructuring at Interpath Advisory said: “Over the course of the pandemic, men’s apparel - and formalwear in particular - has been one of the hardest hit parts of the retail sector, as work-from-home measures and restrictions on events meant demand for suits and formal tailoring waned.
“Unfortunately, and despite the Company undergoing a significant restructuring at the start of the pandemic which saw it move to an online model, the impact on this famous British brand has been severe.
“Our immediate priority is to explore options for the business, including a sale of the business and its assets.”