134 jobs lost as retailer collapses months after CVA approved

134 jobs have been lost as retailer Yorkshire Linen has ceased to trade, less than four months after agreeing a CVA that was meant to secure its survival.

Its owner, The Towel Rail, has closed the doors on all of its stores, some of which are branded as Linen Warehouse.

The Harrogate-based business did operate 27 stores before the CVA, which was to close half and result in 70 job losses.

But those measures weren’t enough to enable the £10m-turnover business to continue and BDO partners Graham Newton and Sarah Rayment were appointed as administrators.

In a statement, the administrators confirmed their appointment to the retailer and said:  “The company operated from 19 stores based in the North of England, which have ceased to trade with immediate effect. Regrettably, all 134 staff have been made redundant.

“The company undertook a Company Voluntary Arrangement (CVA) in February 2019, closing eight stores as a part of that process.”

Graham Newton, BDO partner, said: “Extremely unpredictable market conditions, coupled with the well documented challenges facing high street retailers have had a significant negative impact on trading in recent months. Despite the considerable efforts of management and their team, it has not been possible to secure a sustainable future for the business. As joint administrators, we will be taking all necessary steps to maximise value of the assets for the benefit of all creditors. We will also ensure that employees impacted by the administration receive the support they need.”

Founded in 1993, the retailer has stores across the region, including Harrogate, Hull, Huddersfield, Leeds, Keighley and Wakefield and specialised in the sale of bedding, curtains, cushions and throws.

It underwent a management buyout in April 2016 and its accounts for the year to March 2017 showed a loss for the first time in its history.

However it rebounded the following year, with its £170,000 profits matching the prior year’s loss.

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