Links of London, a British jewelry brand known for its elegant designs and unique collections, recently announced its closure after 29 years in business. The news of the brand’s collapse has left many people wondering what went wrong. Here is an in-depth analysis of why Links of London is closing down.
The Beginning of the End
The year 2014 marked a significant turning point for Links of London when it was acquired by Folli Follie, a Greek-based fashion conglomerate. At the time, the acquisition was seen as a positive move for the brand, which was struggling to keep up with its competitors.
However, things started to go downhill when Folli Follie was hit by financial scandals in 2018. The company’s stock price plummeted by over 80%, and investors lost confidence in the brand. As a result, Folli Follie was forced to liquidate some of its assets to pay off its debts.
The Impact on Links of London
Links of London’s troubles intensified when Folli Follie’s financial difficulties began affecting its operations. The jewelry brand struggled to maintain its inventory levels due to delayed payments from its parent company. In addition, there were reports that some suppliers had stopped delivering goods due to unpaid bills.
The situation worsened when Links of London’s chief executive officer stepped down in July 2019 after just 19 months on the job. The company failed to find a replacement CEO, further fueling speculation about the brand’s future.
The Final Nail in the Coffin
In August 2019, it was revealed that Links of London had filed for administration, a form of bankruptcy protection used by UK companies facing financial difficulties. Deloitte, the accounting firm appointed as administrators for Links of London, revealed that all stores except one would be closed immediately.
Experts cite various reasons for the brand’s collapse, including the changing consumer behavior towards online shopping and increased competition from other jewelry brands.
Conclusion
In conclusion, Links of London’s closure is a sad but predictable end to a once-thriving brand. The company’s acquisition by Folli Follie may have been the starting point of its downfall. However, the brand’s failure to adapt to changing market trends and intense competition from other jewelry brands were also contributing factors.
The collapse of Links of London serves as a cautionary tale for businesses about the need to keep up with changing consumer behavior and maintain financial stability. Hopefully, the lessons learned from this case will prevent similar situations in the future.