Administrators confident of Textiles Direct sale
ADMINISTRATORS handling the retail chain Textiles Direct believe they are on the cusp of selling part of the store portfolio.
Altrincham-based Lucas Johnson was appointed to the homewares and soft furnishings retailer in April.
Textiles Direct Holdings had 53 shops and 400 staff across the country with around two-thirds of them in the North West.
Since the administration around 15 shops have closed and staff cuts at the head office in Oldham have left around 250 employees.
In a creditors’ report, administrator Kevin Lucas, said: “Although no sale of the business has been agreed yet, negotiations have continued with one interested party and it is likely a sale of at least part of the store portfolio will be achieved in the next two weeks.”
The report shows that supplier SHF (Luton) held a floating charge over the business and was owed £1.5m. Trade creditors are owed around £1.8m and there is a tax liability of £850,000. Total liabilities stand at around £5.4m.
The business suffered from declining sales as consumers tightened their belts in the downturn. Ownership of the business switched in February 2012 from Liverpool-based Steve Bentley to TDT Group Holdings, which does not appear to be a UK-registered company.
In January 2013 three directors stepped down – Claire Lyle, Margaret Kenwright and Michael Daly. They were replaced by Zahid Shaikh. Latest accounts, filed in September 2011, show the firm made a pre-tax profit of £338,745 on sales of £19.6m. Online sales through the Textiles Direct website are handled by a separate business which is unaffected.
