Tue, 24 Jan 2023 | ADMINISTRATION
Wales-based mobility retailer Middleton Mobility has fallen into administration as a result of rising costs, supply chain disruption and falling consumer confidence. Matthew Roe and Richard Hawes of Teneo Financial Advisory were appointed as joint administrators to the firm on January 16.
The company sold products including mobility scooters, wheelchairs, adjustable beds and rise and recline chairs and operated from a network of 17 stores. These outlets have all now closed and the company has ceased trading with immediate effect.
In its most recent accounts, for the year to August 22 2021, the company had fixed assets of £1.3 million and current assets of close to £4.7 million. At the time, the company owed creditors £10.6 million, with net liabilities standing at £4.5 million.
According to administrators, the company had first run into difficulties after expanding its store network prior to the onset of the COVID-19, with this situation subsequently being exacerbated by numerous other factors.
The company was forced to close its stores for three months during the first COVID-19 lockdown, as the pandemic seemingly impacting its growth strategy, which included plans to open 6 new stores during 2020. During the pandemic, the company launched an online store and delivery service.
Commenting on the firm’s struggles, joint administrator Matthew Roe said: “The company has been experiencing trading difficulties since expanding its store network prior to the impact of COVID-19. Trading has also been affected by the cost of living crisis, as well as supply chain disruption and despite management’s best efforts it has not been possible to save the business.”
Middleton Mobility founder Tom Powell added: “Like many retailers we have experienced rises to input costs, difficult supply chains and at the same time falling consumer confidence. Middletons was unable to adapt quickly enough to these challenging trading conditions or to meet the additional financial demands placed upon it”.
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