Covid is the Final Nail in the Coffin for Pink Shirtmaker
Pink Shirtmaker, the LVMH-owned fashion retailer and founded as Thomas Pink, has seen its last days. Maybe. Founded by 3 Irish brothers in 1984, the brand became popular in the mid- to late-80s as young City professionals were looking for trendier work gear than the stuffy Savile Row attire. In 1999, LVMH paid £43 million to acquire 70% of Pink. But the shirtmaker has been on a slippery slope, with the need to suit up to work in the City becoming increasingly less common. Then the coronavirus pandemic hit, followed by lockdown and the shuttering of all non-essential stores. That was the final nail in the coffin for Pink Shirtmaker.
Declining Turnover and Losses
While 2013 was profitable for the brand with a pre-tax profit of £722,000 on a turnover of £34 million, thereafter Thomas Pink was on a downward spiral. Revenue remained steady from 2014 to 2016 but profits turned quickly into losses. For the accounts filed for the 2017 financial year, Thomas Pink’s turnover slumped by £8 million to £26 million. Worse still, the brand reported a pretax loss of 29.5 million that year.
Rebranding to the Rescue?
Thomas Pink was rebranded as Pink Shirtmaker in November 2018, with a relaunch in the same year, in an effort to reposition itself to a more upmarket clientele. But these efforts were in vain. The brand’s accounts for 2019 showed that turnover had reached an all-time low of £12 million with a loss before tax of £41 million. Accumulative losses for Pink Shirtmaker from 2017 to 2019 were a massive £94 million. LVHM then decided it was time to jump ship.
Store Closures
Pink Shirtmaker re-opened its London flagship store in Jermyn Street in June 2020 when the first UK lockdown was eased, only to close it again a few weeks later. By December 2020, the store was shuttered for good and covered with black hoardings, along with the closures of the brand’s Madison Avenue New York flagship and the outlets at Heathrow Terminal 2 and 5. What had brought about these sudden closures?
LVHM Exits
After Pink Shirtmaker’s massive losses in its last 3 years of trading, it is believed that LVMH put the brand up for sale. No sale price was disclosed. It appears that nobody was interested in the brand so by December 2020, the French fashion conglomerate had decided to cut its losses and shutdown Pink Shirtmaker completely – stores, website, links on the LVMH, and the brand’s social media accounts, despite retailer being termed a ‘pinprick’ for the organisation. LVMH declined to comment. Stephen Murphy, Chairman of Budd Shirts whose operation is in close proximity to the former Pink store, said:
“For a global colossus like LVMH throw in the towel, you know things must be challenging.”
Is LVMH’s closure of Pink a sign of things to come? Will Richemont drop Dunhill, the British luxury menswear brand, as the market for formal wear continues to contract?
