Both People Tree and Thought Clothing have hit the buffers in recent days.
People Tree, the ethical clothing business, is appointing Opus Restructuring & Insolvency to wind up its UK company, this follows a sharp fall in demand which has left the UK Tree business unable to meet its obligations. Most of the staff have already been let go but it is understood that the business still owes former employees their statutory redundancy entitlements. This forms part of the c.£8.5 million deficit which includes unpaid bills from suppliers in India, assorted UK creditors, and customers who are owed refunds. A number of former employees are understood to be pursuing claims for outstanding redundancy entitlements through the courts. It is, however, believed that People Tree will be continuing to trade via its European website as well as in Japan, although this could not be clarified.
James Minney, chief executive, People Tree said: “I am extremely sad at this situation. Our customers and our wholesale stockists have been and always will be the absolute rock of support for People Tree. Our suppliers and creditors, with whom we have been in close discussions throughout this difficult time, have been supportive throughout our journey.
“The basic mission of fair trade, whether fashion or other goods, of honouring people’s traditions and skills, and the love they pour into the products, and creating sustainable market access, was and is paramount, even though we cannot continue our business in the UK.”
Meanwhile, Thought Clothing (formerly Braintree Clothing), an ethical fashion business, is also understood to have appointed administrators in a bid to continue trading whilst seeking a buyer. The business which has been selling direct, as well as to stockists, has come under severe pressure during the economic turndown.
Share