High Street Takes Another Hit

It was announced today that for the second time, high street shoe retailers Barratt's is to go into administration, putting nearly 4000 jobs at risk.


The first time their owners went into administration they had to reduce the number of stores by 220 from 380. In total the brand has 191 stores throughout the UK on the high street and in malls, it also own the Priceless Shoes brand.


The Bradford based firm blamed the tough economic trading conditions for it's further difficulties.

Administrators Deloitte said that they were "working closely with suppliers to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors".


One wonders when the assault on the high street will ease off. Barratts joins a long list of businesses that are either in administration or have fallen prey completely to some of the worst financial and economic conditions since the Great Depression. 


High street chains provide tens of thousands of jobs. Something needs to be done to help the high street remain a viable shopping option. There are too many towns home to baron, once-bustling town centers.

Scottish Glaziers AC Yule And Son Collapses

Scottish glazing firm AC Yule has become yet another established name to fall victim to the harsh economic climate. The company announced it has been placed in administration with KPMG, putting 211 jobs at risk. Here is the full article, from the site www.building.co.uk: 



Scottish glazing firm AC Yule and Son has collapsed into administration, with the loss of 211 jobs.


The company, an established window fitter and glass processor, confirmed it will keep on 61 staff to try to complete current projects and outstanding orders.


Blair Nimmo and Gary Fraser of KPMG have been appointed joint administrators, and are seeking a buyer for parts or all of the business.


AC Yule is headquartered in Aberdeen, and has branches in Elgin, Livingston and Glasgow.
Blair Nimmo, joint administrator and head of restructuring for KPMG in Scotland, said: “As a result of prolonged difficult economic conditions over the last three years, AC Yule & Sons Ltd sustained a reduction in its turnover together with considerable erosion in its margins.”


“The directors proactively implemented a number of restructurings - both financial and operational - which involved significant additional share capital being injected. Unfortunately, despite these actions, losses continued to ensue which led to the directors concluding that they had no option other than to seek the appointment of administrators.”



Obviously KPMG will hope to find a buyer for AC Yule. But with only the biggest of the big boys with the cash to perform such acquisitions, the chances of a purchase in such an anxious economic situation seem slim at best. However, I wish the company and the staff all the best. I hope they do find a buyer, I hope that as many of their employees retain their jobs. And I hope for all those that do unfortunately lose their jobs that they find new and rewarding ones soon.


The above report can be found here.

Jane Norman In Administration

Not a great way to start the new working week, but it has been announced that the high street fashion retailer Jane Norman has been placed in administration with US accountancy group Zolfo Cooper.

The chain employs around 1600 staff, and has debts of £140 million but has been suffering from slow sales.


Zolfo Cooper has said that they will put Jane Norman into something called a pre-pack administration, where a buyer of their company or assets have already been lined up, before they enter formal administration. This practice has been criticized has it often leaves creditors unpaid. That feels oh so like double glazing doesn't it?! 

Big Home Improvements Company On The Edge

Homeform Group, which consists of Moben Kitchens, Sharps, Kitchens Direct and Dolphin Bathrooms, looks set to be put into administration by private equity group owners Sun European Partners.


The group have filed with the Court a Notice Of Intention to Appoint an Administrator, with the expectation that the company will be Deloitte. This is a process that can take up to ten working days. Though I feel this will be sped up to give the group as much of a chance possible to rectify their current predicament.


In total the group employees 1300 staff, with an additional 1500 self employed fitters. Staff have been told to go home today. A worrying sign that the health of the business is in a very bad way. There are also concerns for customers who have placed orders with the companies involved. Will they get their money back if their installations aren't carried out?


The home improvement market has been one of the worst sectors hit during these harsh economic times. The business body CBI has reported that 85% of home improvement business have recorded a decline in sales in June - usually one of the peak months of the year.

Another Casualty

Conservatory roof manufacturer Amdega has been placed into administration and is to be closed down due to lack of interest and no chance of sale.

This is the report from http://www.creditman.co.uk/:

Mark Firmin and Brian Green from KPMG’s Restructuring practice have been appointed as joint administrators to Amdega, the Darlington based upmarket conservatory manufacturer and supplier.

As there is no prospect for a sale of the business, it is being closed by the administrators and most of the 197 employees have been made redundant.

Mark Firmin, joint administrator and KPMG’s Northern Head of Restructuring, said: “Amdega is a victim of the severe downturn in the big-ticket and home-related parts of the retail sector. KPMG’s latest Retail Sales Monitor highlighted that these businesses are being hit hardest by consumers’ lower spending patterns and Amdega was unable to sustain the ongoing weakness in demand it was experiencing.

“Amdega had approximately 300 orders on its books at the time of the administration so there will be some impact on customers. Our key priority is to assess this situation and communicate with Amdega customers. We will be writing to them as quickly as possible, with information and guidance regarding their next steps.”


It's sad to see another manufacturer go to the wall during these tough trading conditions. We all also have to remember the human cost to these events. People lose their jobs, lose income, bills get harder to pay, plus all the other pressures that come with losing a job.