Retailer Ponden Mill in administration
YORKSHIRE retail group Ponden Mill has gone into administration after struggling with trading difficulties.
The Keighley-based homeware and soft furnishings retailer, which has 135 stores and 80 department store concessions, employs 1,300 people.
Joint administrators from Ernst & Young have been appointed at the group's parent company Marston Mills Group and 44 staff have been made redundant at the Keighley head office although all the shops, which trade under the Ponden Mill and Life from Coloroll brands on the high street, factory outlets, mill stores and department store concessions, have remained open.
Simon Allport and Alan Hudson of Ernst & Young in Manchester are the joint administrators.
Mr Allport said: "Marston is a well established business with leading brands. It has experienced difficult trading conditions due to a downturn in consumer spending, higher utility costs and rising rents. The business will continue to trade whilst we look to sell it as a going concern."
The struggling Marston Mills business was sold by leisure tycoon Trevor Hemmings, the owner of Blackpool Tower, last month to the London-based turnaround fund Agilo.
Agilo, co-founded by city financier Jason Granite and which counts former Conservative cabinet minister Michael Portillo among its advisers, joined forces with retail turnaround specialist Hilco to buy Ponden Mill from Lancashire-based racehorse owner Mr Hemmings, who bought the business in February 2005.
Mr Hemmings' family trusts bought the company from founder Barry Brookfield, who started out with £70 of savings selling linen from a stall in Skipton market in 1968.
Ponden Mill turned over around £37m in 2005 but has been squeezed by the big supermarket chains' move into non-food market sectors, such as bedding and homewares.
