"Sustained difficult trading conditions" blamed for Collectables decline and stores have been closed while further analysis is carried out
North East firm Collectables has gone into administration - putting 200 jobs at risk.
The 27-year-old company, which has 12 across the region, has called in specialists from KPMG after experiencing "sustained difficult trading conditions".
Jonny Marston, Mark Firmin and Howard Smith from KPMG’s Restructuring practice have been appointed joint administrators of Collectables Retail Limited and the related business Xystos Wholesale Limited, which run 11 gift shops in the North East, Yorkshire and Cumbria and a three unit furniture store at Collectables Retail Park in Stockton.
Administrator Jonny Marston, said: “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.”
Jobs are under threat at the shops in Alnwick, Carlisle, two at Dalton Park, the Junction 32 centre in Castleford, three at the Metrocentre, Newcastle, Royal Quays in North Shields and Stockton.
Beds Express, Big Cane and Mandale Furniture in Stockton are also affected.
Although the administrators have closed the stores while they conduct their initial analysis of the company, there have been no immediate redundancies amongst the firm’s 200 employees.
However, the situation is uncertain and the administrators said they will provide a further update in the coming days once a trading strategy has been determined.
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