A SHOP in Huddersfield selling fabrics and soft furnishings has closed after its owners ran into financial difficulties.
Administrators for Fabrics Warehouse Operations Ltd, trading as Fabrics Warehouse, have axed the branch at Leeds Road, Huddersfield, and closed 15 other stores. They have negotiated the sale of 11 stores and are in talks with potential buyers for a further four outlets.
Fabric Warehouse was part of the Homestyle Group until 2004 when it was acquired by Rotherham-based The Furnishings Place Ltd. The business traded from 31 stores, including one at Deighton, and reported turnover of £25m for the year to April, 2007.
But administrator Neil Bennett, a director at accountancy firm Leonard Curtis, said the company ran into difficulties late last year – with directors blaming a run of interest rate rises and a challenging retail environment for the problems.
Mr Bennett said the business had become “unsustainable” in its current form. Since going into administration, 10 stores had been sold to Liverpool-based Caldeira Retail Ltd – with that company also buying the stock of a further 16 stores.
Caldeira was also taking over the responsibility for completing customer orders in 21 stores while administrators were also working with management at Fabric Warehouse to complete the customer orders in the remaining stores where deposits have been paid.
A further store had been sold to Scottish firm Remnant Kings Central Ltd.
Mr Bennett said: “We are currently negotiating the sale of four further stores, which we will keep open for the time being, with the aim of maximising the return to creditors and saving as many jobs as possible. Unfortunately, in the current economic climate it has been necessary to close the remaining stores.”
