The encyclopedia · Finance & Accounting · Financial decision · 1984–2008
Ghost was London's cult fashion label — then the Icelandic banking crisis killed it
Ghost defined 1990s bohemian style with its signature viscose crêpe — then its Icelandic owners were wiped out by the 2008 crash.
Ghost · 2008-10
What happened
Ghost was founded in 1984 by Tanya Sarne, initially as a 'ghostwriting' label where in-house designers created collections under her name. It became known for its signature vintage-influenced viscose crêpe, satin, and georgette designs — clothes that defied trends and developed a devoted following. By 2006, Ghost was a globally recognised London fashion label stocked by Liberty and Harvey Nichols.
In December 2005, controlling interest was sold to Kevin Stanford and the Icelandic investment group Arev. Tanya Sarne resigned in May 2006, citing clashes over the direction of the business. The new owners had ambitious expansion plans, but their financial backing was tied to Iceland's booming banking sector — a foundation about to collapse.
In October 2008, the Icelandic banking crisis wiped out the country's entire financial system. Arev's backers collapsed, and Ghost was pushed into administration — a healthy retail business dragged down by its owners' insolvency. Touker Suleyman of Hawes & Curtis bought Ghost out of administration in late 2008, and the brand continues under his ownership today.
Why it happened
- Ghost sold controlling interest to Icelandic investors, tying its stability to a banking sector that was already overheating.
- Sarne left in 2006 just as the new owners expanded — the brand lost its creative anchor and gained expensive overhead at the same time.
- The 2008 Icelandic crisis was a systemic collapse. Ghost had no firewall between its operations and its owners' liabilities — when Arev fell, the brand fell too.
The lesson
A fashion label whose owners depend on one country's financial system is one banking crisis away from administration.
Aftermath
Touker Suleyman bought Ghost out of administration in late 2008 and has owned the brand ever since. Ghost continues to operate, selling through its own website and major retailers including John Lewis and Selfridges. The brand that defined 1990s bohemian style survived administration but never regained the cultural prominence it had under Sarne — a reminder that creative businesses are only as stable as the capital behind them.
Sources
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