Creative Apparel, a UK clothing manufacturer, has been acquired by Apparel Services in a pre-pack deal after facing substantial trading losses caused by the Covid-19 pandemic and a significant decline in sales from a key customer. This acquisition will not only secure the future of the Stockport-based business but also protect numerous jobs within the company. However, there is currently no update on the progress of Creative Apparel’s new eco factory, which was initially scheduled to open this year.

In recent months, Creative Apparel had announced its intention to relocate to a state-of-the-art smart factory, emphasizing sustainable fashion and aiming to quadruple its turnover within the next five years. To support these plans, the company had received financial assistance from Made Smarter, a government-led program that focuses on integrating data and systems, as well as implementing artificial intelligence tools.

Established in 1988, Creative Apparel specializes in screen printing and embroidery for the fast fashion sector. With a workforce of over 80 employees, the company is capable of manufacturing around 50,000 clothing items per week. While there will unfortunately be job losses as a result of the acquisition, a total of 14 workers will be transferred to Apparel Services Limited through TUPE (Transfer of Undertakings Protection of Employment), ensuring their employment remains protected.

Despite the uncertainties surrounding Creative Apparel’s future under new ownership, this deal offers a glimmer of hope for the company’s continuity and guarantees the preservation of jobs within the fashion industry. The completion of the proposed eco factory in Stockport is anticipated to play a vital role in Creative Apparel’s expansion plans and commitment to environmental sustainability.

Useful links:
Made Smarter program.
Apparel Services Limited.