Jobs lost at retail display firm as pandemic sends business under
Jobs have been lost at a Leicester manufacturer of retail display sets after administrators were called in.
Tyrone Courtman and Deviesh Raikundalia of RSM UK Restructuring Advisory were appointed joint administrators of Thomson Hayes Retail Display on 22 February.
Last month, TheBusinessDesk.com exclusively revealed that the firm was teetering on the brink of administration.
The company designed and manufactured retail display sets, predominantly for cosmetics brands, for use in department stores and shops. Clients included L’Oreal, Dior and Lancome. The business was established in 1989 by directors Chris Thomson and Frank Hayes and employed 26 people.
The pandemic was instrumental in the downturn in bricks and mortar retail sales as consumers were forced to switch to online shopping. This, along with rising costs, impacted on the business – which has been unable to recover.
Prior to the appointment of administrators, the directors decided to wind down the business and to ultimately cease to trade. They had tried to honour outstanding contracts and to fulfil outstanding orders for some customers to maximise returns for creditors and stakeholders. However, says RSM, this became “increasingly problematic, resulting in the appointment of administrators, who are now exploring the feasibility of doing so.”
The administrators will also be seeking expressions of interest in the sale of the company’s remaining business and assets as a going concern, if at all practical.
Some 15 employees have been made redundant and the company will, in all probability, cease to trade, during the week ending 10 March following completion of all outstanding works after which all of the company’s remaining employees will be made redundant. The joint administrators are liaising with the company’s employees to provide relevant redundancy support.
