Jonny Marston, Mark Firmin and Howard Smith from KPMG’s Restructuring practice were appointed joint administrators to Collectables Retail Limited and the related business Xystos Wholesale Limited on 25 September 2013.
The company trades as a gift retailer from eleven stores across the North East, Yorkshire and Cumbria, and as a furniture retailer from three units at Collectables Retail Park, Stockton.
Trading at the 27 year old family business has been hit by the challenging economic environment for the retail sector, which has impacted on its performance.
KPMG Joint Administrator, Jonny Marston, says: “Sustained difficult trading conditions have resulted in the business facing cash pressures with a further increased demand for working capital in preparation for the Christmas trading period.
“We are now assessing the company’s financial position and the options available, whilst marketing the business and assets for sale.”
The administrators have closed the stores while they conduct their initial analysis of the company. On the day of appointment 25 of the firm’s 200 employees were made redundant from the head office in Blaydon. The situation is uncertain and the administrators will provide a further update in the coming days once a trading strategy has been determined.
The company operates from 13 leasehold stores and owns a freehold store in Alnwick.
Any parties wishing to express an interest in the business and/or assets of the company should contact James Lumb on 0191 401 3939 / email@example.com.
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Alison Anderson, KPMG Corporate Communications
T: 0113 254 2980
KPMG Press Office: +44 (0) 207 694 8773
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