Floors-2-Go collapses into administration
Flooring retailer Floors-2-Go has gone into administration for the second time. Administrators Senate Recovery said they have saved part of the Birmingham based business but 53 stores will close with the loss of 192 jobs.
The 35 remaining stores will continue to trade following a sale of part of the group to Nixon and Hope. The sale will save 162 jobs.
Senate said there a number of factors behind the collapse of the firm including competition within the industry and increased internet sales, but said the main reason was the general downturn over the last 12 months and lack of disposable income from consumers.
Jeremy Bowden, director at Senate, said: “We have worked hard with the company, its directors, other parts of the Senate Group and an external funder to achieve this deal despite hostile economic and trading conditions. Everyone involved has worked hard to get the deal through.”
The flooring chain previously went into administration in 2008 following the failure of a £52.4 million management buyout by venture capitalists Alchemy Partners.
The company was then bought back from the administrators by Robert and Richard Hodges, who are part of the family which founded the business in 1999.
In January, Floors-2-Go received a £3.25 million injection from the investment vehicle Hotbed. At the time, the company said it would use the funds to open 60 new stores.
