BREAKING NEWS: Hundreds of jobs lost as two retail chains hit by economic slump

AROUND 300 jobs have been lost and hundreds more are under threat after two Yorkshire retail chains became the latest victims of the downturn.

Huddersfield-based car parts chain Motor World called in administrators following a downturn in sales while homewares group Rosebys has gone into administration.

A total of 95 of the Motor World 237 stores have been shut with the loss of 300 jobs and the remaining 142 stores have been sold in a pre-pack deal to a company backed by Motor World’s owner Bailey Capital which has saved 500 jobs.

Rosebys, which has its head office in Rotherham and a distribution centre in Selby, has an annual turnover of £100m and employs around 2,000 staff at its 280 stores including 19 across the North West.

Howard Smith, Richard Fleming and Mark Firmin of KPMG Restructuring have been appointed as joint administrators to Rosebys.

The Manchester office of accountancy firm BDO Stoy Hayward has handled the Motor World deal, with business restructuring partners Dermot Power and Matthew Dunham appointed joint administrators along with Graham Newton from the firm’s Leeds office.

They have sold the remaining 142 stores to Pacific Retail, which is funded by Bailey Capital the Cardiff-based private investment company that owned Motor World.

Bailey Capital, run by chief executive Stephen Brennan, also owns the Huddersfield-based Maccess automotive and cash and carry business.

Motor World, which has its head office in Huddersfield is one of the UK’s largest independent car care retailers and also sells bicycles and other leisure equipment.

Dermot Power, of BDO Stoy Hayward said: “Despite a strong trading name and presence on the high street, Motor World has been a direct casualty of the current retail difficulties and the continuing squeeze on available credit.”

Martin Waite of Bailey Capital says: “We remain acutely aware that difficult trading conditions will undoubtedly continue; but remain hopeful that we can move the business forward following the restructuring that has taken place, and the consequent strengthening of the management team.”

Roseby'sA KPMG spokesman said although no Rosebys employees had as yet been made redundant, no assurances could be given that jobs at the group would be safe.

Mr Smith said: “The business is continuing to trade as normal while we review the financial position and seek a going concern sale. No employees have been made redundant to date.

“In common with many retailers, the group has experienced difficult trading conditions, leading to continuing losses. Rosebys has recently sought to re-finance, but this did not prove possible in the current economic climate. We are looking for offers for the whole or any part of the business.”

Established in 1922, Rosebys first started up as a market stall in Grimsby.

A team from law firm Addleshaw Goddard’s business support and restructuring team in Leeds are advising KPMG during the administration.

The team is made up of Andy Smith, Emma Kendall and Anna Hodgson. 

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