Radley has been bought out of administration from the owners of Poundland in a deal which leaves the retailer’s shops at risk of closure. Gordon Brothers, which also owns LK Bennett, purchased the Radley brand, intellectual property and some assets in a pre-pack administration deal.

However, the takeover does not include Radley’s retail operations, which include 21 stores across the UK. It confirmed that 42 jobs would also be lost “with immediate effect”, as a result. It came after Radley hired administrators from FTI on Tuesday, after being hit by a slump in consumer demand and higher costs.

Handbag specialist Radley was founded by Australian designer Lowell Harder in London in the 1980s, starting from a stall in Camden Market.

Previous owner Freshstream, a private equity company, purchased the business in 2016 but reportedly put it up for sale earlier this year amid pressure on its finances.

In a statement, FTI said: “The administration team will guide and support affected team members over the coming weeks through the redundancy claims process.

“The administration appointments follow a sustained period of challenging economic conditions for the retail environment, including declining customer demand and increasing operating costs, all of which have had a negative impact on trading.”

It is the latest rescue deal from Gordon Brothers, which purchased Poundland for £1 last year before overseeing significant store closures to help drive the brand’s turnaround.

Major retailer Poundland has confirmed the closure of additional UK stores following the sale of the budget brand earlier this year. In June, owners Pepco sold the brand to a US investment company, Gordon Brothers, for £1, and as part of the deal, a huge restructuring plan was announced and approved, leading to a significant number of stores being removed from the high streets.

This summer saw a huge number of Poundland stores launch sales ahead of the shops’ closing down for good. The chain has now confirmed that these closures will continue into 2026, with stores scheduled to close throughout December and into February. 

The new plan will see the chain’s network of around 800 UK stores slashed to 650 to 700 stores. By the end of December, 18 more Poundland stores would have closed, with two scheduled to cease operation from tomorrow. 

Items in the stores that are closing have been reduced, with some offers up to 40% off, while stock lasts.

Darren MacDonald, Poundland’s UK country manager, said: “We know how disappointing it is when we leave a store, but before we close our doors for a final time, we’re determined to say goodbye by offering even more amazing value to customers. 

“The special reductions, on top of the value we provide in every store, will help us leave locations we’re leaving with pride. And when we close our doors, we look forward to welcoming customers to one of the hundreds of Poundland stores we’ll continue to operate right across the UK.”