Member Article

200 jobs in danger as Collectables enters administration

Gateshead-based Collectables has entered administration, putting nearly 200 jobs at risk and creating 25 immediate redunancies at the firm’s Blaydon head office.

The retailer, which operates gift shops across the North East, Yorkshire and Cumbria, and furniture outlets in Stockton, has appointed administrators at KPMG’s restructuring practice.

Trading at the 27 year old family business has been hit by the challenging economic environment for the retail sector, which has impacted on its performance.

KPMG Joint Administrator, Jonny Marston, says: “Sustained difficult trading conditions have resulted in the business facing cash pressures with a further increased demand for working capital in preparation for the Christmas trading period.

“We are now assessing the company’s financial position and the options available, whilst marketing the business and assets for sale.” Although the administrators have closed the stores while they conduct their initial analysis of the company, there have been no immediate redundancies amongst the firm’s 200 employees.

“However, the situation is uncertain and the administrators will provide a further update in the coming days once a trading strategy has been determined.”

The company operates from 13 leasehold stores and owns a freehold store in Alnwick.

This was posted in Bdaily's Members' News section by Tom Keighley .