Divalimit, the parent company of homeware retailer FADS, Texstyle World and Leveys, has been placed into administration.
The appointed administrators at Timperley-based accountancy firm Hodgsons are continuing to trade the business while inviting interest from potential buyers.
Former Strategic Retail director Roy Gabbie bought the assets of the retailers out of administration in December 2008 through his vehicle Divalimit Limited, in a management buyout. He paid just over £1m for 29 FADS stores, preserving over 200 jobs.
The company now has just 16 trading shops in the UK, including branches in Salford and Trafford.
Administrator Steven Wiseglass said they aim to "find a solution which could save at least some of the stores and jobs. The business has fought against the recession and unfortunately been unable to survive through the worst of it." He went on to say that finding a new owner "under the current conditions" could prove challenging.
Cheshire-based FADS has been established since 1945, and sells a broad range of ready-made textiles including bedding and curtains. It also sells wallpaper and home and office furniture at discount prices.
