Julien Macdonald’s fashion firm enters liquidation – BBC News

The firm of one of Wales’ most famous fashion designers – who has dressed stars like Beyoncé and Jennifer Lopez – has gone into liquidation.

Julien Macdonald’s company hit trouble during the pandemic and officially went into liquidation on 26 July.

It means employees have been sacked and liquidators have had to sell all stock.

“Due to the loss and under-performance of several key contracts, including its main UK retail licensee, along with a previously growing licensee based in the United States, which severely impacted cashflow, the company is now in liquidation,” said Alan Coleman, of liquidation company FTS Recovery.

“The cashflow issues were compounded by general inflationary costs, which impacted on all aspects of the business.”

Steve Bell, who has worked with Macdonald for about 20 years, called it a “real shame”.

“Bad things happen to people but I have nothing bad to say about him. Sometimes people bounce back,” he said, adding: “I wish him the best.”

Often called a fashion king, Julien Macdonald is a globally renowned name.

He grew up in Merthyr and went on to a one-year foundation course at Cardiff Art College. He later received his MA at the Royal College of Art in London.

After his graduation show in June 1996, his talent caught the attention of fashion icon Karl Lagerfeld, who appointed him head designer of knitwear for Chanel.

Throughout his career, he has worked with fashion brands Givenchy and redesigned the flight attendant uniforms for British Airways.

He boasts a star-studded international client list including Naomi Campbell, Kylie Minogue, Gwyneth Paltrow and Victoria Beckham.

Emma Jones, senior fashion promotion lecturer at the University of South Wales said: “It is a sad end of an era, Julian is a role model for lots, he’s a Welsh icon”.

However, she said the industry had changed massively since Covid, and everyone now has “shops in our pockets”.

“E-commerce really has been the nail in the coffin of the high street, and the death of the department store,” she said.

“Unfortunately, a lot of designers rely on contracts with high street retailers to bring their garments to audiences, and unfortunately his association with Debenhams and its decline had a real significant impact on his business.”

Liquidation is a process in which assets are sold off for cash.

It is often the outcome for a company deemed irretrievably loss-making. In that case, its assets are sold off individually, and the cash proceeds are used to repay its lenders.

Usually the tax authorities are the first to be paid, while the company’s shareholders are the last, typically receiving nothing.