People Tree’s UK operations teeter on the edge of liquidation as the ethical fashion brand grapples with debts exceeding £8.5 million owed to creditors.
Scheduled for Friday, October 28th, a creditors’ meeting will witness the appointment of Opus Restructuring as the official liquidator, marking the conclusion of People Tree’s UK business operations. The meeting will be attended by representatives from suppliers, customers, and the UK workforce.
While People Tree continues trading in Europe and Japan, uncertainties loom over the future of its UK and European endeavors. The European website remains functional, with a pledge to resume shipping to the UK. However, concerns arise as insiders reveal the impending redundancy of the European operation’s sole employee, raising questions about its ability to cater to the UK market.
In light of a challenging trading period, People Tree has openly communicated its inability to meet its financial obligations, notably its debts to Indian suppliers. Over recent months, the brand has already reduced its UK workforce.
The outstanding debts encompass £3.7 million owed to other entities within the People Tree group, £1.2 million to founders Safia and James Minney, and over £273,000 to 14 UK staff members. Suppliers in India are also owed in excess of £100,000, with one owed more than £400,000, according to a letter addressed to creditors.
Established as Global Village in Tokyo in 1991, People Tree expanded its footprint to the UK a decade later. The brand emerged as an early champion of sustainable fashion, collaborating with esteemed designers like Vivienne Westwood and Orla Kiely. It garnered support from high-profile clients, including actress Emma Watson and model Jo Wood, while advocating for improved conditions for garment workers worldwide.
Safia Minney, who withdrew from day-to-day operations in 2015, expressed her heartfelt dismay regarding the impending liquidation.
James Minney, the current CEO of People Tree in the UK and Japan, conveyed his sadness over the situation, underscoring the steadfast support from customers, wholesale stockists, and creditors throughout the brand’s journey.
People Tree UK, Ethical Fashion, Liquidation, Debt Crisis, Creditors Meeting, Sustainable Fashion, European Operations, Indian Suppliers, Founders, Safia Minney, James Minney.
