Portas knicker factory in Middleton in administration

Headen and Quarmby factory

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Mary Portas' 'Great British knicker experiment', in which Portas aimed to revive the UK's textile industry, trying to prove it is still possible to make affordable, quality underwear in this country, has failed.

Employees were told on Wednesday (15 January) that the business had gone into administration and they face redundancy.

The machines at the Middleton factory were silent this morning (Friday 17 January). The only person there, a manager, refused to speak and said he would ask "head office" to make contact.

Portas re-opened the sewing room floor at a factory owned by British nightwear manufacturers Headen and Quarmby - the venture was shown in a three-part Channel 4 series, Mary’s Bottom Line.

Until recently the experiment was said to be a resounding success for the Middleton company.

The colourful lace lingerie was said to be in such demand since going on sale in early 2012 at stores including Boots, House of Fraser and online fashion retailers, an initial production run for 5,000 led to orders for 45,000.

Eight apprentices were taken on originally, paid for by TV production company Endemol for the first nine months. And more were taken on as the factory doubled their workforce to meet demand.

One employee, who didn't want to be named, said: "It has come as such a shock, we had no idea the business was in trouble."

An apprentice for the company, who was an apprentice through Mary Portas, also confirmed  he was sent home from work on Wednesday morning and has not yet been paid today.

BDO LLP business restructuring partners, Kerry Bailey and Patrick Lannagan, were appointed Joint Administrators over Headen & Quarmby on 15 January 2014.

The Joint Administrators are currently investigating options to recommence trading and fulfil customer orders, with a view to effecting a sale of the business as a going concern.

Kerry Bailey, BDO business restructuring partner said: “A drop in post-Christmas orders from key customers and a decline in sales volumes has significantly affected the business and resulted in a deterioration of its working capital position. However, we are doing everything we can to try to secure a future for the business, and we are hopeful of securing a sale.

“To that end, the administration team would welcome approaches from commercial parties interested in acquiring the business or assets.”

Mary Portas said today: "I'm really surprised to hear that Headen and Quarmby, the business that we licenced to manufacture the brand Kinky Knickers has gone into administration. I believe strongly in the team and their products, the stuff they make for us is made with passion and love for the product. I am enormously proud of everything they have achieved, their energy and vision.

"Right up until this announcement, H&Q were telling me of their ambitious plans for our brand and the others they manufacture under licence as well as plans they had for their own ranges. It's especially sad as they were even opening an Academy later this month to help share the skills and learning.

"It's so sad that the problems have been caused by cashflow shortfalls due to bad debts arising from some smaller retailers going bust over Christmas and a large retailer cancelling an order – this is of course the sad reality of retail and manufacturing in Britain today."