Thu, 03 Apr 2014 | ADMINISTRATION
Home furnishings retail chain Paul Simon (London) Limited has entered administration after being hit by a fall in sales.
Lee Manning at Deloitte has been called into the embattled business, to continue trade while a buyer is found for the entire business or parts of it. Several interested parties are in contact with the administrators, a Deloitte spokeswoman said.
Paul Simon sells curtains, blinds, beds, carpets and other furniture from its 51 stores mainly located in out-of-town retail parks in the south and south-east of England, and has a 550-strong workforce.
Issues such as online sales eating into margins and the recent floods were blamed for the present situation.
Similarly to other retailers Paul Simon has suffered in the ongoing difficult trading environment, Lee Manning said.
“In addition, its core business has been undermined by the increasing importance of online sales, causing an erosion of margins. This was compounded by the impact of the recent widespread flooding, which restricted many customers’ access to several stores.
“These issues made an element of the store portfolio unprofitable and let to a projected imminent cashflow deficiency, resulting in the administration appointment,” he added.
The retailer has been running a half-price sale, with an additional 20 per cent reduction. The administrators are also working on figuring out whether outstanding orders can be satisfied.
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