A multi-national luxury lifestyle brand is shutting its American stores with immediate effect as it files for bankruptcy in the US.
High-end furniture retailer Oka has closed its branches in Dallas, Houston and Westport in Connecticut amid an over ambitious US expansion.
The company was founded by Viscountess Annabel Astor, a member of the British nobility and mother of the UK’s former first lady, Samantha Cameron.
It has been trading successfully in the UK for 20 years and launched stateside in 2019.
But financial woes have led to the decision to wind up operations in the US, as well as a restructuring back in the UK where it hopes to continue trading.
High-end furniture retailer Oka is shutting its American stores with immediate effect as it files for bankruptcy in the US
‘As a result of the Chapter 7 filing, we have ceased all business operations in the US effective immediately,’ a statement on the OKA US website reads.
‘As such at this time, we are no longer accepting new orders via our US website or stores.’
While operations have been suspended in the US, the brand hopes to survive in its native UK by filing for a Company Voluntary Agreement, a variant of a Chapter 11 bankruptcy filing.
If approved, the deal would see Oka close one of its 13 UK stores and lay off up to 250 staff.
Business of Home reports that a distribution center and a head office would be impacted by the move.
Oka is a lifestyle brand which has previously partnered with actress Erin Doherty of The Crown fame for advertising campaigns.
It offered $2,000 armchairs alongside $900 lamps and $220 candelabras.
Lady Astor (pictured with husband Lord William Astor) stepped down from the board following a dispute with Oka’s owner, Italian firm InvestIndustrial, over its rapid expansion into the US
Oka is a lifestyle brand which has previously partnered with actress Erin Doherty of The Crown fame for advertising campaigns
The company was founded by Astor, along with her sister-in-law designer Sue Jones and Lucinda Waterhouse, a skilled 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, Italian firm Invest Industrial, who she sold to in 2018 for around $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 turned down her proposal to lead a management buyout.
The price of the offer, which she says would have been funded with family money, was not disclosed.
The retailer has closed its branches in Dallas, Houston and Westport in Connecticut (pictured) amid an over ambitious US expansion
The US arm of the company has been struggling since it ran up costs buying US furniture/interiors brand Wisteria in 2019.
In 2021, the company took out an $11.5 million loan to help stem spiraling losses.
Following her departure, Astor said she was ‘sad’ to leave but had an idea for a new business.
Her daughter Samantha is married the to the UK’s former Prime Minister and current foreign secretary David Cameron.