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Pension watchdogs are scrutinising the collapse of Ralph & Russo, the upmarket British-based fashion brand which is now at the centre of a legal fight.

Sky News understands that The Pensions Regulator is examining the treatment of the company’s retirement scheme in the period before administrators were called in in March.

The status of the regulator’s work was unclear on Friday, although sources said its work had got under way recently.

Ralph & Russo, which was sold last week by its joint administrators to Retail Ecommerce Ventures (REV), a US-based investment vehicle, is best-known for having designed the Duchess of Sussex’s £56,000 engagement dress.

It collapsed after running out of cash, with the business failing to make a number of salary payments and staff pension contributions in the months prior to its insolvency.

The Pensions Regulator, which has a wide range of enforcement powers, said in a statement that it did not comment on “individual schemes or employers”.

“Where a company has become insolvent we will work with relevant third parties, such as insolvency practitioners, the Insolvency & Redundancy Payment Services and the pension scheme provider in our role to protect savers,” it added.

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“We have no further comment.”

Administrators from Begbies Traynor and Quantuma have launched a High Court action against Tamara Ralph, the brand’s co-founder, alleging that she and business partner Michael Russo extracted substantial sums of money from the company.

In the particulars of claim, a legal document which sets out the basis of their case, the joint administrators alleged that from October 2020 until March this year, the company “failed to make any pension contributions to Aviva, the company’s pension trustee… notwithstanding the fact that employee contributions were deducted automatically from the employees’ monthly salary via the company’s payroll and PAYE mechanisms”.

The documents assert that “approximately £176,000 was appropriated and/or diverted from the company pension scheme”.

In a statement on Friday, a spokesman for Ms Ralph said that she “has not been involved in any wrongdoing”.

The spokesman added that “along with the company’s directors and c-suite [top executive] staff were advised to seek financial and legal advice prior to making any payments from Ralph & Russo”.

“Ms Ralph was off on maternity leave at the time but the directors followed the advice of their legal and financial advisors on all payments.

“One of the advisors dealing with the financial decisions was Andrew Andronikou of the firm Quantuma [who] subsequently became one of the joint administrators.

“The advice from Andrew and Quantuma was followed completely.”

Ms Ralph had previously denounced the claims against her in the court action as “misconceived and demonstrably false”.

A spokesman for the joint administrators said: “We have a statutory duty to investigate the affairs of the company, the conduct of the directors and any shadow directors and, in particular, in relation to the £60m invested into the company and spent by the founder directors at the expense of the pension regulator, HMRC, secured, preferential and unsecured creditors.

“We are continuing our enquiries in that regard.”

The rescue of R&R by REV – which was set up by Tai Lopez and Alex Mehr, two entrepreneurs – follows the injection of tens of millions of pounds in funding into Ralph & Russo from the likes of Candy Ventures, the vehicle of entrepreneur Nick Candy, and John Caudwell, the billionaire founder of the Phones 4U retail chain.

Tennor Holding, the owner of the La Perla lingerie brand and investment vehicle of financier Lars Windhorst, invested roughly £40m in return for a minority stake in Ralph & Russo in 2019 which valued it at approximately £175m.

The fashion house, which specializes in haute couture and ready-to-wear clothing and luxury goods, has notched a number of notable achievements during its brief history.

In 2014, it was the first British designer in nearly a century to be accredited by the French body which decides which fashion labels can officially be designated haute couture.

It sprang to global prominence in 2017 when Meghan Markle wore one of the designer’s dresses in her engagement photographs.

Ralph & Russo’s celebrity customers are also reported to include Beyonce, Angelina Jolie and Gwyneth Paltrow.

Its average client spends £50,000 per transaction, and it has opened boutiques in Doha, Dubai and Monaco.

The company also operates from locations in London’s Mayfair and New York’s Fifth Avenue, befitting its internationally renowned designs.

Its journey into choppy legal and financial waters was partly triggered by the pandemic’s impact on its business, with a dearth of red carpet events – one of the mainstays of the haute couture industry – hitting demand for Ralph & Russo’s dresses.

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Elon Musk’s dad says Tesla protesters are ‘bums’

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Elon Musk's dad says Tesla protesters are 'bums'

Elon Musk’s father has told Sky News that protesters targeting his son’s cost-cutting work for the US government are “bums”.

Errol Musk was responding, in an interview with Business Live, to a growing backlash among US taxpayers and Tesla customers against his son’s role in the Trump administration-created Department of Government Efficiency (DOGE).

The electric car firm has increasingly become the subject of sales boycotts and protests – neither of which have been consigned to the US though dealerships there have seen vehicles vandalised and even set alight.

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‘Elon Musk has got to go’

Musk Sr told presenter Darren McCaffrey: “To take notice of the bums that are trying to hurt Tesla by damaging cars, well that’s just plain silly. Nobody does that, you know, you use your brain… and (it) tells you these people are the problem, not the car.”

The anger directed at Elon Musk was “media hype”, he said as he also dismissed growing unease among Tesla investors that his son’s main business interest was suffering at a time when the challenges facing it are only rising.

Earlier this month one of Tesla’s earliest investors, Ross Gerber, told Sky News Mr Musk should step down as the electric carmaker’s chief executive unless he quit his work for the Trump administration.

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‘I think Tesla needs a new CEO’

His worries included bad publicity and Mr Musk’s ability to devote enough time to Tesla.

It was revealed last week that Tesla sales had fallen 40% in Europe and were behind those of cheaper Chinese rival BYD on an annual basis.

Mr Musk himself has since warned he expects a “significant” hit to Tesla from Mr Trump’s metal tariffs and looming duties on all US car imports and car parts.

He also hinted at the weekend, in an interview with Fox News, that he could soon have more time on his hands as the bulk of his work at DOGE should be completed by late May.

Errol Musk denied any suggestion that his son was overstretched, saying there were good people at Tesla to delegate day-to-day business while Elon completed “vital work” for US taxpayers, given the state of the country’s mounting debt pile.

“He’s got plenty of ability to do that. Don’t worry about it,” he said, while predicting that Tesla shares would recover to $600 per share by the year’s end. They are currently changing hands for $254.

“There’s no concern there whatsoever, not at all,” he said.

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Post Office interim boss Brocklehurst lined up for permanent role

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Post Office interim boss Brocklehurst lined up for permanent role

The acting chief executive of the Post Office is being lined up to take the job on a permanent basis as the state-owned company continues talks with ministers over its long-term funding arrangements.

Sky News has learnt that Neil Brocklehurst, who was named interim chief last September, is close to being handed the role.

Whitehall sources said on Monday that an announcement about Mr Brocklehurst’s appointment was likely to be made in April.

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The decision, which requires the approval of business secretary Jonathan Reynolds, will bring a degree of stability to an organisation still grappling with the financial and reputational consequences of the Horizon IT scandal, which saw hundreds of sub-postmasters wrongly convicted of fraud and false accounting.

Reliant on the government for its funding, the Post Office has been in negotiations with ministers about delivering a previously pledged pay uplift this year.

Earlier this month, Sky News reported that Nigel Railton, the company’s chairman, had informed thousands of Post Office managers that he had yet to gain certainty from Whitehall about a £120m increase for this year.

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The sum was promised in November as part of a strategy to rebuild the Post Office in the wake of the Horizon scandal.

The Post Office has outlined plans for an ambitious transformation which includes franchising more than 100 directly managed branches.

Nick Read, chief executive of Post Office Ltd, arrives to give evidence to the Post Office Horizon IT inquiry at Aldwych House, central London. Picture date: Wednesday October 9, 2024.
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It was announced last year that Nick Read would leave the Post Office in March

A substantial number of jobs are also being cut at the company’s head office as part of the restructuring.

Several tranches of those have already taken place.

Mr Brocklehurst replaced Nick Read at the Post Office’s helm following a turbulent period for the outgoing boss.

Mr Read was repeatedly accused of being obsessed with his pay arrangements and being at the centre of a series of rows with both board colleagues and his government employers.

Like Mr Railton, Mr Brocklehurst is a former executive at Camelot, the previous National Lottery operator.

A Post Office spokesman declined to comment, while the Department for Business and Trade has been contacted for comment.

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Primark boss Paul Marchant resigns and admits ‘error of judgement’ after allegation over his behaviour towards woman

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Primark boss Paul Marchant resigns and admits 'error of judgement' after allegation over his behaviour towards woman

The boss of Primark has resigned after admitting an “error of judgement” in his behaviour towards a woman in a social environment.

Paul Marchant stepped down as chief executive of the high-street fashion brand with immediate effect following an investigation.

Primark‘s parent firm, Associated British Foods (ABF), said he had co-operated with the investigation, and “acknowledged his error of judgment and accepts that his actions fell below the standards expected by ABF”.

“He has made an apology to the individual concerned, the ABF board and also to his Primark colleagues and others connected to the business,” the firm added.

The group’s overall chief executive George Weston said he is “immensely disappointed”.

“At ABF, we believe that high standards of integrity are essential,” he said in a statement.

“Acting responsibly is the only way to build and manage a business over the long term.

“Colleagues and others must be treated with respect and dignity.

“Our culture has to be, and is, bigger than any one individual.”

ABF’s finance director Eoin Tonge will take over as chief executive on an “interim basis” – and his role will be taken up by Joana Edwards, the group’s financial controller.

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A Primark store. Pic: PA
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File pic: PA

The group’s statement added it “seeks to provide a safe, respectful, and inclusive work environment where all employees and third parties are treated with dignity and respect”.

“Primark is committed to doing business the right way at all levels of the company,” it said.

ABF promised to continue supporting the woman who made the complaint.

Primark results due soon

The group will still publish its interim results for the financial year as planned on 29 April, according to its statement.

In January, ABF reported an uncharacteristic decline in like-for-like sales at Primark across the UK and Ireland.

Sales at the store fell by 6% – with Primark saying it expects “low single-digit” sales growth for 2025 as a result – down from mid single-digit levels in November 2024.

Speaking at the time, Russ Mould, investment director at AJ Bell, said: “If Primark is struggling, you know the UK retail sector is in trouble.”

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