Cash crisis rocks Falmer

Falmer Jeans, the only jeans company to manufacture its jeans in the UK, has gone into administration.

A court order went through yesterday (Tuesday) afternoon. Peter Lawrence of Moore Stephens Booth White is managing the administration.

Bill Hiscocks, investment director at venture capitalist 3i, which has a large stake in Falmer, says: “It’s the result of cashflow pressure. We hope the administrator will be able to trade out of this difficulty and that the business will continue.”

Falmer directors were in meetings all day (Tuesday), and therefore unable to comment.

One source says Falmer has had cashflow problems for “some time” and has had trouble meeting its debts recently. The company is understood to own its head office and warehouse in Essex, as well as its factory in Scotland.

Observers blame a variety of factors for the company’s financial problems: that the UK jeans market is on the decline; that a few denim retailers have recently gone into receivership while owing Falmer money; and that Falmer has not managed to get a stronghold in the men’s jeans market.

Last week, news emerged that Falmer was entering a deal to market Hard Core jeans across Europe (MW October 8). It was seen as an attempt to strengthen the company’s hold on the men’s jeans market. It is not known how administration will affect the deal.

Falmer is the UK’s number-five jeans manufacturer, and has the second-largest share of the women’s jeans market after Levi’s.

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