An upscale interiors retailer, founded by Lady Astor, the mother-in-law of Lord Cameron, the foreign secretary, is facing financial difficulties and has decided to launch a restructuring plan in order to secure its survival. The company, known as OKA, was established in 1999 and has since grown to include 13 stores in the UK. However, in light of the current economic climate, OKA has filed for a company voluntary arrangement (CVA) in court on Friday.
The CVA, subject to approval by creditors, will involve the closure of one of OKA’s UK stores. This move comes after Lady Astor, the company’s founder, stepped back from the board a few weeks ago. Lady Astor, who is also the mother of Samantha Cameron, is believed to still have a financial stake in the company, although the majority ownership lies with InvestIndustrial, an Italian private equity group that acquired a stake in OKA in 2018.
The proposed restructuring plan, developed by the restructuring adviser Teneo, will also impact one of OKA’s distribution centers and one of its head offices. This decision is expected to result in the loss of approximately 40 jobs out of the nearly 250 employees currently working for the company in the UK. Like many retailers, OKA has been struggling to recover from the effects of the COVID-19 pandemic.
OKA was initially launched as a mail order company and has since gained popularity, even attracting celebrity customers such as supermodel Naomi Campbell and actor Eddie Redmayne.
InvestIndustrial has committed to injecting several million pounds into OKA if the CVA is approved, in an effort to support the company’s financial stability. Additionally, OKA has also taken steps to address its US operations by filing for bankruptcy this week and planning to close all three of its US stores that were opened in 2019.
According to a source close to the process, the CVA will not affect the company’s suppliers or customer orders. Gavin Maher, a partner at Teneo, stated in response to an enquiry from Sky News, “The CVA forms part of a wider restructuring of the OKA group, which is supported by the company’s shareholder who has agreed to provide further funding to the company totalling £4m if the CVA is approved.”