The future of a furniture store chain was in doubt today after administrators were called in.
Multiyork Furniture brought in administrators yesterday, putting almost 550 jobs at risk around the country.
The chain, which has 50 shops and makes its own upholstered furniture in Thetford, Norfolk, has one shop in the county in The Parade, Oadby.
The business, which turned over more than £50 million last year, has its registered head office address at Ravenstone Hall, near Coalville.
According to the Guardian newspaper, Multiyork had reportedly been put on the market by its major shareholder, the furnishings tycoon Charles Wade of Wade Furniture Group – based at Ravenstone Hall – which also owns beds maker Feather & Black.
The two brands are run as separate entities and the administration does not include the bed maker.
The Multiyork shop in Oadby
Administrators Duff & Phelp – which also dealt with BHS’s insolvency – are trying to find a buyer for the business while it continues to trade under its existing management team.
Joint administrator Allan Graham, who was appointed on Wednesday, said: “We ask that customers who have placed orders be patient during this time and you will be contacted with further updates in relation to your order shortly.
“We are asking interested parties to come forward as quickly as possible.
“Trading conditions for UK retailers continue to be difficult due to a number of factors including economic uncertainty, rising commodity prices, increasing business rates and the fall in value of the pound which has increased the cost of importing raw materials and products.
“This appears to be leading to a sharp fall in consumer confidence and less money being spent on discretionary items.
“The British Retail Consortium has been reporting that real consumer spending power has been on a downward trend in the last year as the acceleration in inflation has caused shoppers to become ever more cautious in considering what purchases they can afford.
“Many now face higher borrowing costs, given the rise in interest rates, which will only serve to heap further pressure onto household finances.
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“This has impacted certain sectors particularly hard and as a result of trading losses, Multiyork could no longer meet on-going liabilities.
“The joint administrators and management are currently undertaking a review of all orders placed up to November 22, and it is our intention that all orders be completed.
“We intend to continue to trade the business for a short period as we look for a buyer.
“We are hopeful we can find a buyer and we are asking interested parties to come forward as quickly as possible.”