Department store chain TJ Hughes looks set to fold after filing a notice of intention to appoint administrators this week.
The firm, which offers branded homeware and fashion ranges at discount prices, blames waning consumer demand and the loss of supplier and credit insurer support for its current situation and told sister title DIY Week it is exploring all options, including selling some, or all, of its 56 stores. The firm’s collapse would put 4,000 jobs at risk.
It has been reported that accountancy firm Ernst & Young is waiting in the wings and a spokesperson for TJ Hughes told DIY Week that administration, “cannot be ruled out and may be the only way to sell the stores to interested parties”.
Turnaround specialist Endless LLP took the retail chain over in March this year after it reported losses of more than £10m for the year ended January 31, 2010.
The TJ Hughes spokesperson added: “Endless only got involved in March to assess whether the business could be turned around. This has now led to the current action of selling the business to other retailers.”