Wed, 12 Jun 2013 | ADMINISTRATION
Furniture retailer Dwell is on the brink of entering administration and could collapse as soon as today.
Duff & Phelps are in place to take on the administration if things fall in that direction. The business originally appointed Argyll Partners last month to find a buyer for the company but time is running out and the company may end up being put through a pre-pack administration process.
A statement from Dwell, published in the Telegraph, read: “The current economic environment is uncertain, consumer confidence is low and trading conditions are challenging within the declining household and furniture sector.
“As such there remains a risk that the economic situation will worsen and with this in mind the group is taking prudent steps to reduce costs and improve operational efficiencies.”
It added that the business had been planning on focusing on “the best opportunities that can deliver rapid earnings and cash pay-backs” during the 2012/13 financial year. This included opening six stores over the past year, including its Birmingham outlet in the Bullring shopping centre and a store at the Lakeside shopping centre.
Unfortunately, it looks like the company's debts are preventing it from capitalising on its efforts. The firm has net debt of £6.1 million, but has £11.7 million of debt due for repayment during the next 12 months.
Dwell, which is owned by Key Capital Partners, posted pre-tax losses of £1.69 million in the 12 months to 27 January last year, up from £439,721 in the previous records.
____________________________________________________________________________
Related articles:
Dwell considers business sale
How to profit from buying a distressed business
The company offers mobile hydraulic hose replacement and breakdown services across the UK, and is equipped with workstations capable of meeting any client’s needs. The business has developed a strong reputation for responding to urgent call-outs with...
The business is one of the largest independent garages in the region and is an RAC- and AA-approved car servicing provider. With highly trained technicians meeting IMI standards, the company offers comprehensive car and van services for various manu...
The business has developed an industry-recognised application that is tailored to the letting industry, serving independent agents and landlords. The application streamlines property management tasks such as marketing, compliance, accounting, and mai...
29
|
Mar
|
Caravan and motorhome retailer acquired out of administration | BUSINESS SALE
Administrators have completed the sale of a caravan and moto...
29
|
Mar
|
Financial planning business acquires Staffordshire company | BUSINESS SALE
Wren Sterling, a national financial planning business, has c...
28
|
Mar
|
NI pharmacy group acquires third site | BUSINESS SALE
A family-run community pharmacy group has expanded with the ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.