The Luella label has, as of today, ceased trading as parent company Club 21 has announced the withdrawal of its long-term investment in the brand.
In a joint statement, VSQ Limited, the subsidiary of Club 21 that operated the Luella business, admitted that it had reluctantly "taken the decision not to invest further in its relationship with Luella Bartley Limited". It had been the global licensee for the label's ready-to-wear and accessories since 2003.
Luella's key ready-to-wear producer Carla Carini closed unexpectedly last month, meaning that spring/summer 2010 orders will not be fulfilled.
Despite reports suggesting the contrary published in industry bible WWD last year, Luella appeared to be going from strength to strength. Beloved of critics, celebrities and the public alike the quintessentially British label, founded by ex-fashion editor Luella Bartley in 1999, returned to show during London Fashion Week for spring/summer 2007 to much fanfare after six and a half years based in New York (and, previously, Milan), and scooped its founder the coveted title of Designer of the Year at the British Fashion Awards last December.
According to WWD, the label's estimated turnover is around the £9m mark.
"This is a very disappointing situation for everyone involved with the brand," Bartley said in a statement this morning. "I very much appreciate the support that VSQ has given me, but it is upsetting not to be able to protect jobs in this difficult economic climate."
She added, "We have a number of options open to us, and are considering these over the coming months."
Picture: Left, Luella Bartley, pictured last year recieving Designer of the Year at the British Fashion Awards; right, Alexa Chung wearing a spring/summer 2010 Luella dress.
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