Stores under threat as furniture chain appoints administrators

Some 550 jobs are at risk after furniture retailer Multiyork appointed administrators.

The bulky goods and casual dining sectors have been highlighted as being under particular pressure because of their exposure to fragile consumer confidence and rising costs.

Multiyork suffered trading losses and could no longer meet on-going liabilities, leading to its collapse.

Administrators intend to complete all existing orders and will continue to trade the business “for a short period” as they look for a buyer.

Duff & Phelps’ Allan Graham, who was appointed joint administrator alongside Matt Ingram, said: “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.”

Multiyork was founded in 1978 and initially operated in the Old Mill site in Mellis, Suffolk, and now has its manufacturing site at Thetford.

The Norfolk-based retailer has 50 stores across the country, including five in the North West at Chester, Manchester, Southport, Warrington and Wilmslow.

The retail sector does face particular pressure as consumers become more concerned about their own finances.

Graham added: “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.”