Another casualty of high street slowdown: Furnitureland |
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Sat, 24 Sep 2005 19:05
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LONDON: Auditors Ernst & Young were today appointed administrators for furniture stores chain Furnitureland. The contemporary furniture seller is Croydon-based and has 28 stores across the UK. Although the store said there were no plans for job cuts, 500 jobs could be at risk.
The collapse of the store seemed inevitable as it had been struggling with increased competition and was particularly hurt by the slowdown in consumer spending.
The administrators E&Y said they were coordinating with the store’s suppliers to fulfill all outstanding orders. The store has yet to deliver to as many as 20,000 customers. They said they hoped for the suppliers’ cooperation.
If ordered goods have already reached the shops or warehouses, these would be delivered in the normal course of time. If they haven’t come from suppliers, then E&Y plan to offer customers similar goods at a 10 percent discount.
The chain’s major shareholder SB capital said they had no clear idea of the scale of the store’s debts. They believe the collapse of the store was due to credit insurers withdrawing support because of uncertainty in the retail sector.
The store’s management plan to discuss the situation with the staff. The stores will remain open until October 5. Customers with orders can contact the store today for an update on their order.
E&Y will try to find a buyer for the store.
Furnitureland is one among a few casualties of the current slowdown: the others being Klaussner, Courts and Ciro Citterio. Many stores fear the situation could worsen in the months ahead as oil and petrol prices continue to soar to record levels.
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