Endless acquisition set to appoint administrators
A MAJOR retailer bought by turnaround investor Endless earlier this year is set to appoint administrators.
Department store chain TJ Hughes, which has 57 stores nationwide and 2,000 staff, has been hit by a severe downturn in trading. Like-for-like sales are said to be down 20% on last year.
The business nearly went into administration in January before it was given a reprieve by Leeds-based turnaround investor Endless which acquired the loss-making company from private equity firm Silverfleet Capital in February for a nominal sum.
A source close to Endless told TheBusinessDesk.com: “TJ Hughes has been struggling for a long time and made a loss of £10m last year. Despite a lot of time, money and effort it is not going to be possible to revive it.
“Turnaround by its nature is high risk and you’re not going to win them all.”
Matters came to a head last week when credit insurers withdrew cover to TJ Hughes’ suppliers. This combined with a heavy funding requirement (of around £20m) ahead of Christmas and the refusal of some retail landlords to offer flexible terms forced Endless to act.
TJ Hughes, which traces its roots back to 1912, specialises in fashion, electrical goods homewares and cosmetics, offering well-known brands at discount prices.
One possibility being considered is a pre-pack deal which would see Endless take the most profitable stores.
It is understood that Ernst & Young partners Simon Allport and Tom Jack from the firm’s Manchester office will be appointed to handle the insolvency.
