Radley has been bought out of administration from the owners of Poundland in a deal which leaves the retailer’s shops at risk of closure. Gordon Brothers, which also owns LK Bennett, purchased the Radley brand, intellectual property and some assets in a pre-pack administration deal.

However, the takeover does not include Radley’s retail operations, which include 21 stores across the UK. It confirmed that 42 jobs would also be lost “with immediate effect”, as a result. It came after Radley hired administrators from FTI on Tuesday after being hit by a slump in consumer demand and higher costs.

Handbag specialist Radley was founded by Australian designer Lowell Harder in London in the 1980s, starting from a stall in Camden Market.

Previous owner Freshstream, a private equity company, purchased the business in 2016 but reportedly put it up for sale earlier this year amid pressure on its finances.

In a statement, FTI said: “The administration team will guide and support affected team members over the coming weeks through the redundancy claims process.

“The administration appointments follow a sustained period of challenging economic conditions for the retail environment, including declining customer demand and increasing operating costs, all of which have had a negative impact on trading.”

It is the latest rescue deal from Gordon Brothers, which purchased Poundland for £1 last year before overseeing significant store closures to help drive the brand’s turnaround.

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