Specialist Comments On Continuing Issues In Retail Sector
Retail company Floors-2-Go has entered administration for the second time in three years, with more than 50 outlets and 190 job losses expected as a result of the insolvency.
Administrator Senate Recovery has confirmed that the financial situation of the chain and revealed that Nixon and Hope have bought part of the group in order to safeguard the remaining stores and jobs.
The firm previously went into administration in 2008 when it was bought out by Robert and Richard Hodges. It is believed that this time around low sales have impacted on the company and forced it to go into administration.
Michael Bennett, an insolvency and restructuring specialist at Irwin Mitchell, said the developments once again highlighted the difficult economic conditions that companies are continuing to deal with at present.
He explained: “The story of Floors-2-Go is one which we have sadly already seen in the retail sector over the past few months, with a number of high-profile administrations affecting major brands including Focus and Habitat.
“Unfortunately there remains little to cheer other retailers, with consumer spending remaining relatively low and no signs that this is likely to change in the medium term. The likelihood is we will see further casualties.
“The September quarter is obviously the next big test for retailers, particularly as we are also now seeing HMRC taking a tougher stance on negotiating instalment payment plans. It is vital that firms with concerns over such matters seek advice as soon as possible.”