Breaking news: Rescue deal for SCS
JOBS at ScS have been saved but shareholders will lose out after a rescue deal was put together to prevent the collapse of the 96-store furniture chain.
Sun European Partners - the UK wing of US private investment firm Sun Partners Inc - yesterday paid an undisclosed sum for the Sunderland business. The deal was agreed almost immediately after ScS was placed in administration.
In a statement to the stock exchange, ScS said: "Following due diligence by Parlour and the board, it became clear that the appropriate method of effecting the sale to Parlour was for the ScS Business to be acquired by Parlour following an administration of the company."
Mark Firmin and Richard Fleming of KPMG were appointed as joint administrators of the company, which employs 1,300 people.
Mr Firmin said: "I am delighted that we have been able to complete a transaction that will enable the trading business to carry on as normal."
Trading in ScS shares was suspended last week at 6.5p. Shareholders are now unlikely to receive a dividend and the prospect of a dividend to unsecured creditors was also "uncertain", the ScS statement said.
For more on this story see nebusiness in The Journal tomorrow.
Page two: A look back at troubled times for SCS.
