Businessman loses his second company

Mar 28 2008 by Graeme King, The Journal

FITTED kitchens and bathrooms business PH Interiors has collapsed with debts of around £200,000, putting 30 people out of work.

Known as Pennine Home Interiors until February this year, the Gateshead company was owned by Brian Perry who previously owned Pennine Windows, which also went bust earlier this year.

The demise of PH Interiors appears to be another victim of the economic downturn – or at least consumers’ fears over what is going to happen to the housing market.

PH Interiors had been in existence for around 18 months, trading from premises on Octavian Way on the Team Valley Trading Estate.

Mr Perry and his fellow directors, including his 37-year-old son, also Brian, had invested substantially in setting up the business, but the recent uncertain trading conditions have left the business unable to pay its way.

Accountants RMT from Gosforth are in charge of the business with a creditors’ meeting due to be held next week, and the remainder of the business’s affairs to be tidied up over the coming weeks.

Mike Pott, recovery partner at RMT, said: “The company has ceased to trade. They are going into creditors and voluntary liquidation, with a creditors’ meeting scheduled for April 4.

“The company employed 24 of its own staff and then about 10 subcontractors carrying out home improvements. The amount owed to creditors at the moment is about £190,000, that is trade creditors, and the directors have invested fairly significant sums too.

“The problem was they invested heavily in the business, in the showroom, in setting it up, but before it had chance to recoup the outlay, the business got hit by a significant downturn in orders.”

Four weeks after Pennine Windows collapsed at the beginning of January, the assets of the business were bought out by former Paramount Windows bosses, brothers Graham and David Auld from Cramlington, who have continued to trade under the Pennine name.

The deal for the Aulds to acquire the Pennine Windows name meant Pennine Home Interiors was obliged to change its trading name to PH Interiors.

Several windows and doors companies have suffered financial problems in recent months.

In the North East, Budget Windows from Stockton also went out of business and was bought out by the Aulds.

PAGE TWO: More Pennine and Budget stories