Partners and employees of the New Zealand rugby brand around Europe are facing weeks of uncertainty after its British subsidiary, Canterbury Europe, went into administration earlier this month. Based near Manchester, Canterbury Europe handled sales in the British and Irish markets and supervised distribution in other European countries, including a full subsidiary in France.
The Canterbury group and the administrators, KPMG, are apparently trying to find a buyer or an investor for the European business. JD Sports Fashion, the British retailer controlled by Pentland Group, has reportedly shown an interest in Canterbury, even though this retailer hardly sells any performance products.
The new status of the company, which can be likened to Chapter 11 bankruptcy proceedings, has caused the loss of 72 out of 86 jobs at Canterbury Europe’s office in Stockport. The company had sponsorship deals with the Scottish national rugby team as well as the rugby teams of Leinster, London Wasps and Cardiff. These agreements have been suspended as part of the procedure, with the affected clubs listed as unsecured creditors for any amounts they are owed. Canterbury also has deals with the Yorkshire and Hampshire cricket clubs, and the Portsmouth football club.
KPMG said the insolvency was caused by difficult trading conditions, as Canterbury failed in its attempts to break into categories other than rugby. Furthermore, the company’s British business was affected by the weakness of the pound, since it imported its products from the Far East.
The administrators added that the company would continue to operate during the insolvency proceedings, but entities that depend on invoices and deliveries from Canterbury Europe would be affected.
Among other clients, this is the case for Canterbury Europe’s French subsidiary, opened ahead of the Rugby World Cup in 2007. It has been performing well in the last years. It employs 11 people in Toulouse and Paris and is responsible for sales in Italy other parts of Continental Europe.
Canterbury had ambitiously invested in Europe in the last years by moving into other sports, from cricket to football. Furthermore, it opened its first mono-brand store in London at the beginning of this year and was planning to open more in Europe in the next three years.
Scott Chapman, Canterbury’s chief executive in New Zealand, said the company’s business in other regions of the world was unaffected by the proceedings in the U.K. Earlier this year, Canterbury’s former South African license holder was liquidated, but the brand has renewed its contract with the Springboks. The world champions were one of five teams at the 2007 World Rugby Cup that used Canterbury performance jerseys.
