Fenwick faces turmoil as losses prompt restructuring efforts
- Fenwick has called in restructuring experts after years of financial losses.
- The chain reported a pre-tax loss of £38.1 million in 2024 and has been loss-making for six years.
- This move raises concerns about possible store closures and job losses across its locations.
In the UK, Fenwick, a department store chain with a rich history dating back to 1882, has been grappling with persistent financial difficulties. As of March 2025, the retailer has enlisted the help of restructuring experts from AlixPartners following six consecutive years of losses. This strategic decision raises concerns about potential store closures and job cuts, affecting the 1,569 employees working across its various locations, including Newcastle and London. The company's downward trajectory was further exacerbated by a pre-tax loss of £38.1 million on sales of £299 million reported for the year ending January 2024. The company has been notably slow to adapt to evolving shopping trends, particularly the rise of e-commerce. Despite selling its flagship Bond Street store in 2022 for £430 million to bolster its financial position, Fenwick's management struggled to transition to a digital-first approach. The pandemic had a severe impact on the business, as its lack of an online presence made it vulnerable during lockdowns when physical stores were forced to close. This lack of foresight has been echoed across the retail sector, with many traditional retailers facing similar challenges. This ongoing crisis is reflective of larger trends hitting high street retailers, including significant cost increases linked to employers' national insurance and minimum wage hikes introduced in the October 2024 budget. Fenwick is not an isolated case; the sector has seen various retailers, such as WH Smith and New Look, take drastic measures like selling off parts of their businesses or closing numerous stores in response to the changing economic landscape. Internally, Fenwick has experienced turmoil with high-profile departures, including the exits of chairman Simon Calver and chief executive John Edgar in the past year. After years of familial conflict, the business is currently helmed by two relatives from different branches, Mia Fenwick and Hugo Fenwick. As the company forges ahead with restructuring efforts amid its financial distress, it signals wider challenges within the retail market that compel other high street brands to reconsider their operational strategies moving forward.