Customer anger delays Courts reopening
Administrator keeping stores closed
Threats to store staff from angry customers have prompted administrator KPMG to postpone plans to reopen furniture retailer Courts’ UK stores.
Courts put the UK business into administration at the start of the week after failing to reach agreement with its banks over funding for restructuring plans.
KPMG is talking to potential buyers for the 88 stores, and had planned to reopen them by Friday in order to continue trading the business as a going concern.
However, in a statement KPMG head of corporate recovery Mick McLoughlin said: “Unfortunately, because of disturbances and aggressive incidents that have taken place in the last couple of days, perpetrated by a small minority of customers, we cannot take the risk of reopening the stores.
“We will review this situation over the coming days but the safety and security of Courts staff is a major concern.” Courts employees will still be paid while the stores are closed.
KPMG has advised customers who paid for orders by credit card to seek refunds through the card issuer. However, those who paid by cash or debit card are behind the banks in the creditors’ queue.
KPMG’s stock check this week has identified more than 3,000 customers who would be able to collect orders that have been paid for from the stores. However, the vast majority of paid for orders are not in store, and are now unlikely to be supplied by manufacturers who can not expect to be paid.
McLoughlin said there has been substantial interest in the UK business. “Our strategy remains to sell the business as a going concern.”
Courts overseas stores are not in administration and continue to trade normally.
