Please visit http://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Friday, 24 June 2011

Habitat stores in administration

Habitat has put 30 of its stores into administration with the other 3 in central London being sold to Home Retail Group, the owners of Argos and Homebase.  The deal is reported to be for £24.5m.


Habitat has said that the 30 stores would continue to trade as normal for 6 months while the administrators conducted talks with potential purchasers.

The company has said that it has found the retail environment very challenging and in a statement it said; "A return to profitability for the business in the UK appears unlikely in the near term as many of the stores are expensive and poorly located for a furniture retailer,"
It also promised to fulfil all existing orders and protect customer deposits.  This is good news as other retailers have not been in a position to do this.

So our earlier blog of crunchtime for retailers has been borne out by events....
If you are a struggling retailer see our page on how a CVA can help.

2 comments :

  1. The June Rent day is clearly an issue for many retailers, but a bigger issue is the new drop in retail spending. Anyone in retail wwill tell you that May was down, and June is worse.

    The constant bad news about Greece and Teachers and Petrol is taking its toll. I fear that there will be many more, and like 2008/9 this will be a weekly event now.

    ReplyDelete
  2. As an author of this blog I couldnt agree more. In fact the other elephant in the room is the Internet. More and more are shopping is done online and the high street retailers have to improve. They all have recognisable brands which gives them a head start.. I wonder how many are at the online marketing show in London over the next two days....

    ReplyDelete

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

Web Analytics