Aspinal of London has hired financial advisers from KPMG to explore its strategic options if an attempt to sell the business fails to find a suitable buyer.
KPMG will help assess a range of funding options as a “plan B”, insiders told Sky News.
Aspinal, a privately owned company, is reportedly in discussions with a number of prospective buyers after years of mounting losses. Bankers at Houlihan Lokey have been drafted in to lead the sale talks.
With a flagship store in Mayfair and a series of boutiques in other upmarket locations, Aspinal of London has built up a reputation as a maker of luxury leather accessories, including handbags, wallets and other related accessories.
The company’s premium positioning and British heritage are proving particularly successful with international customers, which helped lift annual sales by 11% to £35 million in the year March 2019.
And while losses wided to £5.94 million during the same period, founder Iain Burton expects the company to be profitable this year.
“I am more excited about our international opportunities and plans for Aspinal than I have ever been, particularly with the traction Aspinal is getting in China and Asia,” he told Sky News.
“I think with the confusion over Brexit now resolved, it will bring new confidence and momentum to the UK market.”
Progress towards a sale or other form of financing is expected to be made within the next month.