Julian Charles bought out of administration saving 230 jobs

Julian Charles, the Stretford-based national soft furnishings retailer, has been bought out of administration after being hit by the threat of rising National Insurance employee charges.

The company, which dates back to 1947, was acquired by London investment firm SKG Capital in 2020, which led a turnaround drive to return the business to growth and profit.

In 2022 it announced plans to open up to 30 stores and concessions across the country, taking the chain up to more than 100 sites.

It filed a notice of intention to appoint administrators after securing lending from Jacquard Capital, an affiliate of Baaj Capital, which was also invested in Salford online fashion retailer In The Style Fashion. Baaj Capital, led by Jaswinder Singh, also owns Crazy Price Beds.

Marco Piacquadio and Alan Coleman​, directors with FTS Recovery, were appointed joint administrators and completed a sale of the business and assets to Great Bedding Co Ltd, rescuing a total of 230 of 251 jobs across more than 25 trading sites, plus separate concession sites.

The insolvency firm completed the pre-pack sale following an accelerated marketing process.

Marco Piacquadio said: “As is typical when parachuted in, we were focused on seeking to rescue as many elements of the business as is possible, always front of mind being the position of the employees, consumers and other creditors and stakeholders.

“This was a relatively complex transaction with significant scale and the ability to move quickly was key. I am grateful to have achieved a really pleasing result given the circumstances and we wish the new owners and remaining staff and stakeholders the very best going forward.”

He added: “I would also like to thank the wider professional advisers who helped with the transaction. Our legal team was led by Hayley Phelps of HCR Law, with considerable wider input also required from HCR’s property team given the scale of sites involved.

“Thanks also to John Pye Auctioneers and Valuers, who ran a substantial marketing process under the provisions of SIP 16, led by Gary Harper and his team.”

Julian Charles is a national multi-channel retailer, offering a wide range of quality bedding, ready-made curtains, cushions, throws and home décor accessories.

Founded in Lancashire in 1947, the company has 70 outlets across the UK and operates 41 stand-alone stores, plus concessions such as Boundary Mill and in leading garden centres.

It employed more than 250 staff.

In recent years the company has suffered a number of economic headwinds which have resulted in cash-flow difficulties and left it unable to meet all its current liabilities.

Aside from a significant drop in turnover, the company is mindful of the impact of the increasing tax burden, particularly those announced in last October’s budget, having a direct impact on its bottom line as a result of increasing employment costs.

Alan Coleman, director at FTS Recovery, said: “A devastating combination of rising costs and declining consumer confidence have hit the UK’s retail sector hard in recent years, Julian Charles included.”