TJ Hughes’ administrators have appointed retail consultants GA Europe to help liquidate stock in the chain’s 57 stores, amid news of “strong interest in the business”.
GA Europe has also acquired the debt in the business of private equity firm Endless. Endless took TJ Hughes over in March this year after the discount department store retailer reported losses of more than £10m in 2010.
The company has continued to report declines and called in administrators Ernst & Young in June, blaming weak demand and the withdrawal of credit insurance.
Ernst & Young says the move by GA Europe will “not impact on the administration strategy” and stressed they are still attempting to sell TJ Hughes as a going concern.
Joint administrator Tom Jack said: “We are already in discussions with over 30 interested parties and we are encouraged by the strong level of interest in the business and its portfolio of 57 stores.”
He added: “However, there are significant stock levels and we therefore must ensure we are also pursuing a strategy to trade this stock through the business, in case we cannot find buyers for all of the company’s stores and employees. Promotional activity will therefore commence immediately in all TJ Hughes stores.”