— Fresh from filing bankruptcy proceedings in the U.S., high-end brand is looking to strike a deal with creditors in the U.K. as it attempts to restructure the business.
The company said it has launched a company voluntary arrangement, or CVA, as part of a plan to “reconfigure and reduce its cost base and restructure its balance sheet.” Gavin Maher and Robert Fishman of have been appointed as joint nominees to the CVA.
Principals said the aim is for Oka to return to profitability, and secure its long-term future. “Oka, like other retailers in the U.K., has had some difficult years” due both to the COVID-19 pandemic and the cost-of-living crisis.
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Mark Saunders, chief executive officer, said Oka is a “well-loved U.K. brand and the CVA, if approved, will enable the business to stabilize its operations and focus on its core U.K. market after the headwinds it has faced in the past. A successful CVA process will secure the long-term future of the business.”
Oka operates 13 U.K. stores and an e-commerce platform. The company employs 235 employees in the U.K. across its head office and stores. In 2019, Oka expanded its operations into the U.S., opening three stores and an e-commerce platform, which will wind down following the Chapter 7 filing last week.
Under the CVA, the company is proposing a restructuring of its key operational costs, including its distribution center and one of its head offices. The move will impact 33 employees.
One store closure is currently planned within the proposals, affecting a further five employees. The company said it is working with impacted colleagues, and the plan is to transfer them to other stores, where possible.
The company said all critical suppliers to the business, including its stock suppliers, are unaffected by the CVA. All customer orders are unaffected and will continue to be fulfilled, it added.
To support the restructuring, the company’s shareholder has agreed to provide further funding for a total of 4 million pounds. The new funding is conditional upon the CVA being approved, and not being subject to a successful challenge.
Oka was cofounded in 1999 by , mother of , Britain’s former first lady, and the fashion entrepreneur. Astor teamed with the interior designer Sue Jones and the horticulturalist Lucinda Waterhouse on the brand, which is known for its colorful, patterned textiles with bohemian flair, and mix of heritage-inspired and contemporary .
In 2018, Oka’s private shareholders sold the company to European investment house , and Astor resigned from the company’s board of directors in May.
The American fashion designer made his into the world of furnishings with Oka in April, with three collections, one of which included pieces for the study, such as a set of nesting tables and a desk.