The company signed an investment agreement with Biron Capital in July, however no funding has been provided from the latter to date. In a statement to shareholders on Friday, Mercury Brands questioned whether Biron Capital had access to "appropriate funding" to complete the proposed transaction.
As a result of the collapse, Mercury Brands is unable to meet conditions set by an existing finance facility. This meant the company could no longer unlock cashflow to sustain its operations or pay off debts.
S&Z Insolvency's Stan Trainanedes has been appointed as voluntary administrator.
Mercury Brands wholesale portfolio includes Rochford, Purr, Mac & Jac, Kangol, French Kitty and Billiecart.
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