A multinational luxury lifestyle brand is immediately closing its US stores after filing for bankruptcy in the US.
High-end furniture retailer Oka has closed its branches in Dallas, Houston and Westport in Connecticut due to an overly ambitious US expansion.
The company was founded by Viscountess Annabel Astor, a member of the British nobility and mother of Britain’s former first lady, Samantha Cameron.
It has been successfully traded in the UK for 20 years and was launched in the US in 2019.
But financial problems have led to the decision to end operations in the US, as well as a restructuring in Britain, where the company hopes to continue operations.
Luxury furniture retailer Oka is closing its US stores immediately as it files for bankruptcy in the US
“As a result of the Chapter 7 filing, we have immediately ceased all business operations in the US,” reads a statement on OKA US’s website.
“As such, we are no longer accepting new orders through our US website or stores at this time.”
While operations in the US are suspended, the brand hopes to survive in its native Britain by filing for a Company Voluntary Agreement, a variant of a Chapter 11 bankruptcy filing.
If the deal is approved, Oka will close one of its thirteen UK stores and lay off 250 staff.
Business of Home reports that a distribution center and a head office would be affected by the move.
Oka is a lifestyle brand that previously collaborated with The Crown actress Erin Doherty on advertising campaigns.
It offered $2,000 armchairs, in addition to $900 lamps and $220 candlesticks.
Lady Astor (pictured with husband Lord William Astor) stepped down from the board after a dispute with Oka’s owner, Italy’s InvestIndustrial, over its rapid expansion into the US.
Oka is a lifestyle brand that previously collaborated with The Crown actress Erin Doherty on advertising campaigns
The company was founded by Astor, along with her sister-in-law, designer Sue Jones, and Lucinda Waterhouse, an experienced horticulturist.
Astor resigned from the board in May this year after clashing with the company’s new owners over their rapid expansion in the US.
Lady Astor, 75, is at odds with OKA’s owner, Italy’s Invest Industrial, to whom she sold in 2018 for about $51 million.
Invest Industrial counts Aston Martin among the big names in its portfolio.
Astor remained on the board as a non-executive director until earlier this year.
Her decision to leave came after the owners rejected her proposal to lead a management buyout.
The price of the offer, which she said was financed with family money, was not disclosed.
The retailer has closed its locations in Dallas, Houston and Westport, Connecticut (pictured), due to an overly ambitious U.S. expansion
The company’s American arm has been in trouble since costs rose due to the purchase of American furniture/interior brand Wisteria in 2019.
In 2021, the company took out an $11.5 million loan to help combat mounting losses.
After her departure, Astor said she was “sad” to leave, but that she had an idea for a new business.
Her daughter Samantha is married to former Prime Minister of Great Britain and current Secretary of State David Cameron.