Redundancies asfloorsfirmin administration
THE Middlesbrough outlet of a national flooring retailer has closed after the company called in administrators.
Birmingham-based Floors-2-Go also has a store in Stockton, which is still open.
The company called in administrators Kroll Corporate Advisory and Restructuring Group earlier this week who are now looking for a buyer for the firm.
The company has been hit by the housing market downturn and a drop in spending on home improvements.
Kroll has closed 41 stores, including the Middlesbrough branch, cutting a total of 97 of the chain’s 450 staff nationally.
Two employees at the Middlesbrough store were made redundant, a spokeswoman for Kroll said.
She added: “It’s early days in the administration.
“All employees are being consulted.
“It’s a difficult time for everyone involved.”
Kroll partner Fraser Gray added: “Retailers are battling a particularly hostile trading environment at present, and it is clear that the pain is being felt acutely in the home improvements sector.”
But Mr Gray added that the business would continue to trade while administrators weighed up the options for the retailer.
“Floors-2-Go has a strong brand, a well-dispersed nationwide network of stores, an established online presence and a contracts division, so despite the harsh trading conditions, we remain hopeful of selling the business as a going concern,” he said.
The wood and laminate flooring retailer began as a family business in Birmingham in 1999.
It floated on the London stock market in 2004, evolving from cash and carry-type warehouses to retail superstores in prime high street and retail park locations.
Floors-2-Go was bought for £52.4m in December 2006 by directors and private equity firm Alchemy Partners.
Its problems come against a background of difficult conditions as consumers cut back on home improvements and “big-ticket” items.
According to the British Retail Consortium’s latest retail sales figures, sales of both large and small furniture and homewares weakened further in June despite continued discounts and promotions.
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