TJ Hughes on verge of administration

| June 28, 2011 | 0 Comments

Department store chain TJ Hughes has today revealed it is set to enter administration.

The Liverpool-based store has more than 50 outlets across the UK and has a headcount of 4,000 – which are all at risk.

The company said it will be appointing an administrator over the next week or so, unless a buyer can be found for the business.

In March, the retailer was on the verge of collapse and it was bought out by its management team.

The firm has been struggling, as are many retailers, as consumers cut back on spending as they are squeezed by rising inflation and tax hikes.

It has been a bad few days for the retail sector after Carpetright today announced a 70% fall in annual profits.

Furthermore, the floor coverings specialist said it is reviewing its stores, which could lead to closures.

Also today, chocolate retailer Thorntons announced plans to close 120 stores over the next three years.

Thorntons said as part of a strategic review of the business, a further 60 shops could close as it blamed challenging trading conditions for the latest measures.

Meanwhile, yesterday it was revealed fashion retailer Jane Norman had entered administration, while last week, furniture chain Habitat said all but three of its stores would be put into administration.

Other struggling retailers include HMV, Game, Dixons and JJB Sports, all of which are planning to reduce the number of stores, while Mothercare is cutting 110 shops to focus on out-of-town retail.

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