Nougat calls in administrators after falling victim to warm UK autumn

British clothing and beauty brand Nougat has been forced to call in administrators, after becoming the first victim of the UK's unseasonably warm autumn.

On Friday, the group, whose products are stocked by department store John Lewis, appointed administrators from Zolfo Cooper, who blamed the firm's malaise on “a downturn in trade amid challenging market conditions".

The brand's issues will increase fears among fashion retailers that are already being forced to discount during what should be one of the most lucrative times of the year, as they attempt to clear stocks of coats and knitwear.

Sales in the sector declined for the fifth consecutive week in the seven days to 16 November according to figures from accountancy firm BDO, which monitors the performance of mid-sized high street chains such as French Connection, Oasis and White Stuff.

Excluding the impact of store openings and closures, sales dropped 4.4%, BDO added, indicating the arrival of cooler weather was yet to provide a tangible boost to sales.

“I think it will be tough and discounting will certainly erode margins," said Sophie Bevan, head of retail at BDO.

"Despite a rise in consumer confidence, there is so much going on globally it does give people a knock and there will be winners and losers this Christmas.”

The likes of Marks & Spencer, New Look, Gap and Debenhams are already offering discounts of between 20% and 50% on clothing, as experts expect big brands to use next week’s Black Friday, the discount day imported from the US, to clear excess stock.