Directors prepare to liquidate Bridal Gallery Group

DIRECTORS of the Liverpool bridalwear chain The Bridal Gallery Group are expected to liquidate the business.

Last week the firm closed its five shops in Liverpool, Chester, Southport, Tarleton and Preston with the loss of 29 jobs, and its owners are now being advised to put the business into a creditors’ voluntary liquidation.

The shareholders – Preston-based Eric and Pauline Stables – blame its bank and credit card processors for the situation.

A statement on its website said: “In recent weeks both our bank and our credit card processors have made it impossible for us to continue trading. This has come as a shock to us as I am sure it has to you also, and we did not expect to be put in the situation of having to make this decision.

“Our bank has refused to increase our overdraft facility of £20,000 that allows us to fund the day-to-day running of the stores since the day we opened the business six years ago. This is despite going from zero turnover that day to what is a considerable amount now.

“Our credit card processors have also decided they want extra cash security just to continue allowing us to take credit card payments, this is on top of the current £180,000 cash security they are already holding. To get this they have been taking 25% of all credit card payments since August, putting us in an extremely difficult position.”

Insolvency specialist Begbies Traynor is advising the directors. Partner David Moore said: “For the past six years, the company has failed to produce a profit and has only remained with the financial support of the directors.

“The company experienced a brief upturn in trade but this was superseded by a quiet period and the directors forecast a quiet year for 2013 in the wedding market, hence the current difficulties. Directors, working together with Begbies Traynor, are now making all efforts for as many brides as possible to see their orders for dresses being completed in time for their big day.”

The company’s statement added: “It is our intention to fulfil all current orders we have, however this requires the agreement from our suppliers which we are currently in discussions with. We will be pushing hard for them to allow us to provide your dress as intended, and hopefully they will also, like ourselves, not want to put you in a bad situation.”