Recession Claims UK Clothing Retailer USC

Tuesday 30th of December 2008 04:55:06 AM

Recession Claims UK Clothing Retailer USC

The global recession has come home to the United Kingdom clothing industry once again. In a wake of failing chain store companies, the newest victim is the 19 year old retailer USC. The company sells designer clothing ranging from polo shirts to printed t-shirts to dresses and also men’s fashion. The High Street company has announced it is going into administration. This will affect 15 stores in the 58 store chain with the remaining 48 stores being purchased by Dundonald Holdings, Ltd.

Analysts agree there will be more clothing chains going into administration or insolvency before the economy turns around. In fact, Experian predicts that one in ten stores located in the High Street area will be closed by the end January 2009. The Experian Director of Property Consultancy said, “It has been the most challenging time for retailers for at least 30 yeas. Trading conditions are very tough and the collapses we’ve seen so far are just the tip of the iceberg. There is too much space in the market and not enough demand.”

The failure of USC will lead to the loss of 300 full and part time jobs. The company has been selling branded clothing lines for almost 20 years and was owned by West Coast Capital. The headquarters are located in Dundonald, Ayrshire. The company began in Edinburgh with one store in 1989. The administrators will try to find a buyer for the 15 shops not being purchased by Dundonald Holdings, Ltd. With the buyout of the 43 stores, up to 1,100 USC employees will be able to keep their jobs.

Other companies which preceded USC into administration include Woolworth’s, Officers Club, Whittard of Chelsea, Adams and many others. Consumers are spending less on clothing and durable goods as unemployment rates continue to rise in the UK.

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