The Impact of SilkFred’s Collapse on Small Fashion Businesses
Rena Jessop and her sister, Jade, first noticed something was wrong when they suddenly lost access to the backend of online clothing firm SilkFred’s platform. At first, they thought it might be a routine maintenance period. However, after some research, they discovered that SilkFred had entered administration, which meant the company was in financial trouble and unable to operate normally.
The sisters, who live in Birmingham, have been running their own occasion wear business, Honor Gold, since 2009. They started working with SilkFred in 2016, allowing the platform to sell their clothing.
“Finding out that SilkFred had collapsed was shocking and upsetting,” Rena said. “This happened just before a scheduled payment date, so we are owed money for sales that were already made. Many of the affected purchases were for our premium limited-edition lines, which means we’re now short of some of our high-end stock.”
SilkFred had played a significant role in boosting the visibility of Honor Gold. According to Rena, between 20 to 25 per cent of their online sales used to come through SilkFred. However, the sisters also have their own website and use other platforms to sell their products.
The business owner described the impact of SilkFred’s collapse as “noticeable.” She explained, “The immediate issue has been the financial loss from unpaid sales, which has affected our cash flow in the short term. SilkFred’s collapse has removed a sales channel that consistently brought us a new and engaged audience.”
Although they remain confident in their brand and continue to perform well through their own channels, the sisters are now facing both financial and operational challenges. They are working hard to expand their direct sales channels and exploring alternative retail and marketplace partners.
SilkFred filed a notice of intention to appoint an administrator on 24 October and then deactivated its online shop. The London-based business entered administration on 29 October and is working with financial advisory firm Quantuma Advisory Limited to handle the process. Andrew Watling and Duncan Beat of Quantuma have been appointed as joint administrators of SilkFred.
Regarding customer refunds, the joint administrators stated: “As a result of the administration, it is not possible to make any further refunds.” Anyone owed money by SilkFred is considered a “creditor” and will rank as an “unsecured creditor” in the administration. Creditor claims will be dealt with according to a legal order of priority, but based on current information, there may not be enough funds to make payments to unsecured creditors.
For shoppers who paid for items on SilkFred using a credit card and spent more than £100, they may be eligible to claim a repayment from their card provider. Affected customers should ask for their money back under Section 75 of the Consumer Credit Act. They will need to contact their credit card provider directly to try and get a refund.
In another blow, gift cards and vouchers for the company will not be honored.
Rena believes that SilkFred’s collapse highlights broader challenges faced by Britain’s fashion sector. She said, “It underscores the pressures that online marketplaces and smaller fashion platforms are under, particularly in balancing rapid growth with sustainable fashion management. It also reflects the competitive and fast-moving nature of the market, where consumer demand for both affordability and variety can make operations difficult to sustain.”
She also pointed out that businesses like Shein have had a major impact on Britain’s fashion businesses. “The rise of ultra-fast fashion brands like Shein has compounded these challenges. By offering products at prices often below wholesale cost and shipping them directly to the UK, these companies have significantly disrupted the industry. This has made it harder for smaller British brands to compete on price, undermining margins and threatening the sustainability of independent fashion businesses.”
Despite all the challenges they face, both Rena and Jade remain confident that people’s appetite for high-quality clothes made in Britain remains strong. The pair’s clothing has been worn by a string of celebrities.
Rena concluded, “SilkFred’s collapse is a reminder that while there is strong demand for fashion from independent brands, sustainable business models, industry support, and fair competition are essential for long-term success.”