Rival to acquire 14 Courts stores
Agency deal with SB capital will allow chain to reopen
SB Capital is to acquire the 14 best performing Courts furniture stores, and has agreed to temporarily reopen the remainder of the 88 UK stores on an agency basis.
SB Capital, which owns Courts rivals’ Furnitureland and Land of Leather, will close the stores it is not buying on a phased wind-down programme over the period to February 20 2005.
The reopening will enable stock to be liquidated and most customer orders to be completed, Until now, administrator KPMG has been unable to reopen the stores due to fears for the safety of staff having to deal with angry customers.
Mick McLoughlin, joint administrator and head of KPMG Corporate Recovery said: “We have reached an agreement with SB Capital, who will handle the disposal of the Courts stock, both in the stores, warehouses and in transit. In the circumstances this is the best result we could have achieved for the customers. 4,000 people who have paid in full for furniture which is at the stores or warehouse will have the furniture delivered.
“All of the remaining customers who have made payments in full will receive their original order where possible. If this is not possible, they will have the opportunity to choose an alternative item of the same value. For those customers who have paid by deposit they will be offered an alternative item less 10 per cent discount, whilst others will have a claim against their credit card companies.”
The stores will reopening this Thursday, December 16. The 14 stores being acquired by SB represent 20 per cent of Courts’ total UK retail turnover, and will be converted to the Furnitureland brand.
McLoughlin said: “Unfortunately we did not receive any deliverable offers for the business as a going concern. However, the offer with SB Capital hopefully secures employment for staff in the 14 stores and will assist to ensure customer orders are fulfilled.
“We have received considerable support from employees during the administration, in extremely difficult circumstances, and thank them for their efforts.”
Courts appointed administrators for its UK business and the Courts Plc parent company after failing to reach agreement with its banks over restructuring finance. Courts overseas operations have separate boards, management, suppliers and funding, and are continuing to trade as normal.
