TJ Hughes appoints E&Y as administrators

TJ HUGHES has collapsed into administration, blaming tough competition and a fall in consumer spending.

The Liverpool-based company employs around 4,000 people and has 57 stores nationwide.

It emerged on Monday night that the business was in severe trouble when  turnaround investor Endless confirmed that insolvency was on the cards, just four months after buying the struggling business from private equity firm Silverfleet Capital.

Ernst & Young partners  Tom Jack and Simon Allport from Ernst & Young have been appointed to handle the administration.

Mr Jack said: “The retail environment has been particularly tough during the first six months of this year and TJ Hughes has struggled against a backdrop of reduced consumer spending and increased competition.

“Whilst management have tried to reinvigorate sales performance and control costs, it has unfortunately not been possible for the business to continue to trade outside of insolvency.”  

No jobs have been lost and the business is being offered for sale as a going concern.

Jack added: “TJ Hughes will continue to trade as we look for a buyer of the chain.
It is very much business as usual and we are grateful to the chain’s loyal customers, employees and suppliers for their continued support.”

TJ Hughes is just one of a number of retailers to collapse into adminstration or axe scores of stores. Carpetright and Thornton are closing shops, Habitat and Jane Norman are in administration with Manchester-based Homeform expected to appoint administrators any day.