£12m Leicester gas and electrical store enters administration
Leicester-based electrical and gas appliance retailer Gas Superstore has entered administration.
FRP Advisory has been appointed to look after the day-to-day running of the firm, which suspended trading in April.
Ten members of staff have lost their jobs, but six remain to “address the needs of the business’s customer base”.
Family-run for two generations, Leicester-based Gas Superstore had traded for over twenty years, as a national retailer of household electrical goods. It is thought that the company had a turnover of around £12m.
Prior to the suspension of trading, Gas Superstore had sought to recapitalise the business, however the necessary injection of capital failed to materialise, resulting in pressure on cash flow increasing to unsustainable levels.
Administrators say the Company was left with no viable option other than to first suspend trading and then seek the protection of administration to allow for a more viable long term solution to be found.
A statement from FRP Advisory says: “Any customers affected by the suspension of trading have been informed about recourse from security on their cards under the statutory rights as provided by the Consumer Credit Act.”