Chiltern Mills looks for sale
YORKSHIRE textiles retailer Chiltern Mills could be sold after becoming another victim of the downturn.
Bosses at the Leeds-based firm, which specialises in discount linens, textiles and household items, have filed a notice of intention to appoint an administrator, blaming the recession for the move.
The notice was filed by business rescue, recovery and restructuring specialists Begbies Traynor at the High Court in Leeds on behalf of the company.
Bosses hope they can find a buyer before the administration comes into force, which could happen in the next week.
In a joint statement, David Wilson and Julian Pitts of the Leeds office of Begbies Traynor, said: “We have been instructed by the directors of Chiltern Mills in relation to the company’s financial position.
“It is the intention for the company to continue trading with a view to selling the business and assets as a going concern and to preserve the jobs of as many of the company’s staff as possible.”
Mr Wilson said: “Current high street trading has forced the situation upon the company, it is very much down to market conditions as a result of the recession.”
He emphasised that Begbies Traynor had not yet been appointed administrators but the notice filed in the High Court means it will be served on the charge holders who have 10 days to consent to an administration order.
“The High Court action gives the company the protection it needs to work out a way forward strategy,” said Mr Wilson. “In the meantime it will carry on trading while the utmost efforts are made to sell the business as a going concern with Begbies Traynor taking calls from potential buyers.”
Chiltern Mills, which operates from seven outlets and employs 148 staff, received new investment from founder Merlin Treymaine and bankers HBOS last August after its parent company Chiltern Mills Holdings went into administration.
The deal was supported by advice from a legal team at Leeds-based law firm Brooke North led by partner Stuart Frith.
The company’s failure was blamed largely on long and expensive leases on several uneconomic properties.
Mr Treymaine founded the company in 1993 with his wife Jennifer and another family member, Paul Jones.
In 2005, after 12 years at the helm, Mr Treymaine and his wife sold the company to a management buy-in team only to buy it back after just 10 months in the hands of its new owners.
Chiltern Mills has outlets in Leeds in Meanwood and Cross Gates, and others in Nottinghamshire, Bridlington, Doncaster, and Redcar.
