Ilva Furniture, the Danish furniture chain, has gone into administration after trading for only two years in the UK. The company has fallen victim to the credit crunch.
Kroll, the corporate recovery specialist, have been appointed as administrator of its UK division. The move leaves the future of 400 employees, based in three stores in Gateshead, Thurrock and Manchester, hanging in the balance.
Ilva arrived in the UK in 2006 and said it would rival John Lewis by the end of the decade. It was seen as a potential rival to Ikea, however it has had many problems.
The business made a £62 million loss on £26 million of sales in the year to April 2007.
Ilva is currently continuing to trade. Peter Saville, a partner in Kroll has reportedly said that it is their intention to fulfill existing customer orders. Options for the future of the business are to be evalued over the coming month.
Last summer, the UK division was purchased by Lagerinn, an Icelandic corporation, which intended to get the retailer back on its feet. The company have recently announced a withdrawal from the UK because of difficult trading conditions in the retail sector.
