Plus-size clothing brand Live Unlimited declares bankruptcy: what we know.

According to The Sun: A well-known fashion brand, sold in Next and M&S stores, has declared bankruptcy, delivering another blow to consumers.

Live Unlimited, which specializes in plus-size clothing, applied for administration this week.

Public documents indicate that the company has brought in consultants from Irwin Mitchell to manage the process.

The application for administration typically gives a retailer up to 10 days before official bankruptcy, but the time can be shortened if necessary.

Documents at Companies House also state that the brand has two outstanding obligations to HSBC.

The Sun newspaper approached Live Unlimited and Irwin Mitchell for comments.

Interestingly, the brand's website remains active, and customers can still place orders.

Even if the company goes into administration, it does not necessarily mean that orders will be canceled.

News of its difficulties will come as a shock to fans of the brand.

The brand, founded by Rachel Heaser and Tracy Egan, recently began collaborating with Nordstrom to sell its products in the U.S.

Last year, the company updated its website following successful financial results.

Live Unlimited launched in 2012, with its website going live in 2017.

Its products can be found in major retail chains like Next and John Lewis, where the brand's clothing is available both online and in stores.

In 2023, Live Unlimited launched a partnership with M&S, and its products are also featured on this retailer's site.

Customers have praised the brand for its "soft and comfortable" clothing and wide range of sizes.

This news comes amid tough times for retail, as rising costs and decreasing consumer purchasing power are negatively impacting brands.

Today the Cefinn brand, popular among royals, also announced it is going into liquidation.

Twenty-four employees will lose their jobs, but they will receive severance pay and wages.

The Cefinn website will continue to operate, and the store will function normally for a few more months.

Additionally, the Bodycare chain will close 32 of its 147 stores as part of the administration process.

PROBLEMS IN RETAIL

Today’s news is yet another blow to the shrinking retail sector in the UK.

River Island plans to close up to 33 stores in January as part of a restructuring to pay off debts.

Closures are expected in major cities such as Edinburgh, Leeds, Oxford, Brighton, and Perth.

Meanwhile, Poundland will close 68 stores as part of a major restructuring plan.

Last month, Claire’s went into administration and stopped accepting online orders.

However, all 306 of the company's stores in the UK and Ireland will remain open.

The British Retail Consortium predicts that the increase in national insurance contributions will cost the sector £2.3 billion.

Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices before the beginning of April.

A survey of over 4,800 companies showed that 55% expect price increases over the next three months, up from 39% in a similar survey in the second half of 2024.

Approximately three-quarters of companies cited labor costs as a primary financial burden.

The Centre for Retail Research also warned that around 17,350 stores could close this year.

This comes amid a challenging 2024, during which 13,000 stores closed their doors forever, which already represents a 28% increase compared to the previous year.

Professor Joshua Bamfield, director of the CRR, noted: “Data for 2024 shows that while the overall store closure results have not been as bad as in 2020 or 2022, they are still concerning, and the situation may worsen in 2025.”

Professor Bamfield also warned of a grim future for 2025, predicting that up to 202,000 jobs could be lost in the sector.

“With high store maintenance costs and household expenses for consumers remaining, we may witness job losses in retail that exceed the peak levels during the pandemic in 2020.”