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Wednesday, 1 February 2012

The Discovery Stores Closing Down?

Update: 7/02/2012  Andrew Nichols and John Butler of Driffield-based licensed insolvency practitioners Redman Nichols Butler were appointed administrators of Discovery Store on January 27, according to documents seen by the Yorkshire Post.

I have been receiving emails from people in relation to a firm that operates gadget shops called The Discovery Store Limited.  A number of people have complained that the staff have not been paid as the firm has said that it is going into administration and they should claim their money from the government. It is true that in the event of insolvency unpaid wages can be claimed from the national insurance fund.  For more details please see our page on redundant employees  However, my research so far has not indicated that it has gone into a formal insolvency procedure and so no claim can be made.  If the firm is compulsory wound up then a claim can be made, however this may be some months away. The firm has had a couple of CCJ's against it but that is all.  

If the business owes money to HMRC or trade creditors they may petition to wind the company up. Employees may try and get an employment tribunal to award them their pay.  If the firm subsequently goes insolvent then any award will have to be recovered from the remaining assets if any.

The firm says it has 20 stores but lists only 5 as it appears that some are being closed down after the Christmas trading period.  So what, if anything, wrong has been done.

Has the firm been trading wrongfully?  This is difficult to ascertain but they need to have been wilfully piling up debt knowing that there was no chance of paying the creditors for this to be the case.  It could be argued that they are closing down stores to avoid exactly that.

To see what the staff have been saying then read this


  1. All the staff feel betrayed by them specialy when we worked our asses off for that company, then to say we will get paid at the end of jan, then just so happens that they go in to administration just before hand... Im not the only hacked of with this, there is loads of us.

  2. Darren it's unfortunate but don't take it personally. It's business and there is always a risk. You don't know if the business was promised money before February which also fell through. Don't feel ripped off! You should take pride in the fact that you tried to make it a success.

  3. Apparently now Geraldine Jones has now bought the company out of Administration in March 2012.....when I worked as a Store Manager for the company, leaving around a year before they went into Administration she was one of the Company Directors, she was the highest rung on the company ladder. How can she now buy her own company out of trouble? They do this on a regular basis. I left due to teh fact they knowing sold dodgy goods and it was down to Store Management to deal with the public when they tried to return shoddy goods. They had fantastic staff, who worked out of huors to keep them afloat and look how they repay them. Disgusting!



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