Struggles Continue in Post-Pandemic Market as High-End Retailers Face Mounting Economic Pressure

LONDON – Ralph & Russo, the London-based luxury fashion house once synonymous with red carpet glamour and haute couture, is on the verge of filing for insolvency for the second time in three years, according to a report by The Times. The company filed its intention to appoint administrators on April 14, a legal step that grants temporary protection from creditors and is widely seen as a prelude to full insolvency.

Founded in 2010 by Tamara Ralph and Michael Russo, the brand gained global prominence after outfitting celebrities like Angelina Jolie, who famously wore a Ralph & Russo gown at the European premiere of Maleficent: Mistress of Evil in 2019. Despite its elite clientele and international presence — including boutiques in London, Paris, Dubai, New York, and more — the fashion house has struggled to recover from the financial fallout of the Covid-19 pandemic.

Ralph & Russo first entered administration in March 2021, amid widespread retail disruption caused by lockdowns and canceled events. The company was ultimately acquired for £3.5 million ($4.63 million) by U.S. investors Tai Lopez and Alex Mehr of Retail Ecommerce Ventures, known for scooping up distressed American brands such as RadioShack and Dressbarn. However, continued financial strain prompted the company to enlist restructuring firm Kirkland & Ellis in March 2023.

The latest filing casts doubt on the future of the brand’s couture operations and its network of high-end boutiques. Ralph & Russo specializes in bridal couture, luxury apparel, shoes, handbags, and accessories. Its London Maison — available by appointment only — remains operational for now.

Industry-Wide Trouble

Ralph & Russo is the latest in a string of high-end retailers grappling with insolvency. The luxury fashion industry has faced severe headwinds since the pandemic, as stay-at-home mandates and canceled events drastically reduced demand for formalwear. Rising inflation, surging labor costs, and elevated interest rates have further strained business operations across the sector.

In the U.S., formalwear giant David’s Bridal filed for Chapter 11 bankruptcy for the second time in April 2023, citing the lingering effects of the pandemic. Similarly, the American affiliate of French brand Anne Fontaine filed for Chapter 11 Subchapter V bankruptcy in January 2024, after failing to recover from pandemic-era losses.

Canadian operations of Ted Baker also succumbed to financial distress, filing for restructuring under Canada’s Companies’ Creditors Arrangement Act in April 2024, alongside Chapter 15 bankruptcy proceedings in the U.S. The move resulted in the closure of all its North American retail stores.

Legal woes have compounded issues for some brands. In August 2024, Oakland-based luxury retailer McMullen filed for Chapter 11 after being sued by competitor Moda Operandi over alleged copyright infringement involving unauthorized use of product images.

As Ralph & Russo faces an uncertain future, its story underscores a broader challenge confronting the global luxury fashion sector: adapting to a post-pandemic economy where demand is shifting and operational costs remain high. Whether the brand can once again escape collapse will likely depend on new financing, strategic restructuring, or another rescue sale.