1,000 Jobs At Risk At The Yorkshire-Based Business

Over 1,000 jobs have been put at risk following news that Yorkshire-based retailer Barratts has been placed into administration.

Joint administrators Philip Duffy and David Whitehouse, of insolvency firm Duff & Phelps, were appointed on 8 November 2013.

Philip Duffy said: "Difficult trading conditions in the sector led the directors to explore potential refinancing options and additional equity for the business.

"The company had recently received an offer from an investor to inject £5m into the company but that offer was withdrawn on the evening of the 7 November.

"In view of the financial position of the company and withdrawal of that equity offer the directors were left with no choice but to appoint administrators."

This is the third time that Barratts has gone into administration. The announcement coincides with news  that Blockbuster UK has also appointed administrators for the second time. Moorfields has been appointed with the restructuring firm saying that it is speaking to interested buyers.

Expert Opinion

Although there has been plenty of positive macro economic news, this latest administration follows that of Blockbuster and demonstrates the continuing difficulties on the high street. <br/> <br/>“Even where rescue attempts are attempted and savings have been made, there are certain businesses whose model which may simply not be fit for purpose even in a slimmed down version. Many large retailers are still suffering at the hands of stiff competition from smaller and more nimble online businesses and I expect we will see more companies in distress as this threat continues.” <br/> <br/> Andrew Walker - Partner