Kitchen company latest victim of credit crunch

Sep 11 2008 by Karen Dent, The Journal

A WELL-KNOWN kitchen company is the latest business to fall victim to the economic downturn and has been placed in administration.

Grange Kitchens, based on the Tyne Tunnel trading estate, was set up by Eric Steven 35 years ago as a kitchen showroom before it expanded into manufacturing kitchen units.

It worked with individual buyers and housing developers building new homes, designing and fitting the kitchens it had made at its factory in North Shields. It is believed the business employed around 50 people. It is not yet clear how the administration has affected the security of their employment.

Andrew Haslam, of Begbies Traynor rescue and recovery specialists in Newcastle, has been appointed as the administrator. He was not available for comment last night.

North Tyneside’s elected mayor John Harrison said: “This is disappointing for the employees and the borough. We will be seeking to support those affected to help them into other employment or training opportunities.”

The business was founded by Mr Steven in 1973 with a number of partners.

Two years later, he took over the company and moved into assembling kitchen units. Grange’s expansion saw it outgrow a number of premises on North Tyneside.

Its first move was to the former goods yard at Tynemouth Station, then into Brew House Bank in North Shields.

Increased demand from across the North and an expansion into Scotland saw the firm shift again to Bird Street in North Shields, giving it 26,000sqft for production, storage and dispatch.

In 2003, it moved into its current home at the Tyne Tunnel trading estate, four years after David and Craig Steven took over the running of the business.

The downturn in the housing market and effects of the credit crunch on consumers’ spending power has resulted in problems for a number of furniture and interiors companies.

Sunderland’s ScS put itself into administration in June before being rescued by private equity group Sun European Partners, and Icelandic furniture store Ilva, which employed 100 people at its Gateshead store, went into administration soon afterwards.

Two North East companies have been placed in the hands of receivers this week. Visit nebusiness.co.uk to find out more.