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The encyclopedia · Strategy & Leadership · Strategic decision · 1964–2008

Biba was London's iconic 1970s fashion destination — closed and failed twice more

Biba was the epicentre of Swinging London fashion with a million customers a week, but creative disputes closed it in 1975, and two revivals also failed.

Biba · 2008-12-31

What happened

Biba was founded in August 1964 by Barbara Hulanicki and her husband Stephen Fitz-Simon. It began as a mail-order business after a pink gingham dress promoted in the Daily Mirror generated 17,000 orders. The first shop opened at 87 Abingdon Road in Kensington, and within a decade Biba became the epicentre of Swinging London fashion — a destination where teenagers, rock stars, and aristocrats shopped side by side.

By 1973 Biba had moved into the seven-storey Derry & Toms department store on Kensington High Street — 'Big Biba' — drawing up to a million customers a week. It sold affordable fashion, cosmetics, and home goods across themed floors, with a restaurant and a food hall. But the expansion was funded by selling a 75% stake to Dorothy Perkins, and then the British Land Company acquired Dorothy Perkins, gaining a 70% controlling interest.

Hulanicki clashed with the board over creative control. She resigned, and in 1975 British Land closed the business — the building was worth more than the struggling retailer. Biba was relaunched three times after the original closed: first in 1977 (brief revival of the cosmetics line), then in the mid-1990s (fashion line that failed quickly), and finally in 2006 under designer Bella Freud. The 2006 relaunch entered administration in 2008. In 2009, House of Fraser bought the brand and operates it as an in-house label.

Why it happened

  • Biba funded its growth by selling control — Hulanicki owned only 30% by 1973 and could not stop corporate owners from closing the brand when the building was worth more than the business.
  • The Derry & Toms building was worth more as real estate — British Land closed a thriving business because the land value exceeded the retail value.
  • Three revival attempts failed because Biba's magic was tied to Hulanicki's vision and 1970s London — a brand name alone could not recreate the momentum.
What it costClosed 1975; 3 failed revivals; administration 2008costly

The lesson

A cultural phenomenon is not a business asset. Biba defined 1970s London, but when the founder lost control, the owners simply closed it — the real estate was worth more than the brand.

Aftermath

The 1977 cosmetics revival failed. The mid-1990s fashion line failed. The 2006 relaunch under Bella Freud entered administration in 2008. In 2009, House of Fraser bought the Biba name and turned it into an in-house label — a brand that once defined Swinging London reduced to a department store concession.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →