Written by: Keith Tully
Reviewed: Thursday 13th June, 2013
Upmarket furniture retailer Dwell is reportedly on its last legs with news that it is set to close its doors for good.
The furniture chain, which has 24 stores nationwide, is on the brink of company administration putting 200 jobs at risk. Last month the company hired Argyll Partners to try and find a buyer to salvage the business; but to no avail.
Now it has been rumoured that financial advisory firm Duff & Phelps has been lined up as administrator and an announcement is due any day.
If the retailer does collapse, it will be the latest high-street casualty to suffer during tough economic times with the likes of Blockbuster, Comet, HMV and Republic also crumpling. Cash-strapped consumers have slashed their spending on household items like sofas and chairs and this has had a damaging effect on British businesses.
According to various reports, Dwell had net debt of £6.1 million but £11.7 million of debt was due for repayment over the next 12 months. The firm’s most recent annual reports reveal that pre-tax losses had increased to £675,320 from £456,349 over the year.
Key Capital Partners, a private equity firm, had invested £5 million into the business in August 2010.
The administrator will now explore all options to try and rescue the chain from going bust, although a pre-pack administration is expected.
A spokesperson from Dwell told The Telegraph: “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.”
So what will be the company’s fate? We’ll just have to wait to find out but when it comes to your own business; don’t just sit around to see what the future holds.
If you are struggling with money woes and need some advice, let the experts at Real Business Rescue help. Take the first step to rescuing your business today and call 0800 231 6040. We have a team of turnaround specialists that are highly skilled in business recovery.