Floors-2-Go calls in administrators
Wednesday, 23 Jul 2008 14:33
Floors-2-Go folds in wake of crunch
Flooring retailer Floors-2-Go has gone into administration, blaming a falling housing market for its decline in sales.
The UK's biggest seller of laminate and wood flooring was taken private just 18 months ago in a management buy-out.
Managers and private equity firm Alchemy Partners paid £52.4 million in December 2006 for Floors-2-Go.
But administrators were called in on Monday evening after sales fell by more than 20 per cent in recent months – largely due to a depressed housing market and a subsequent fall in spend on DIY.
Administrator Kroll has shut 41 of Floors-2-Go's 132 stores and 97 staff have been made redundant.
Fraser Gray, spokesperson for Kroll, said: "Retailers are battling a particularly hostile trading environment at present, and it is clear that the pain is being felt acutely in the home improvements sector.
"Floors-2-Go has a strong brand, a well-dispersed nationwide network of stores, an established online presence and a contracts division, so despite the harsh trading conditions, we remain hopeful of selling the business as a going concern.
"Floors-2-Go will continue to trade whilst we review all options for the business."
Headquartered in Birmingham, Floors-2-Go employs 450 staff.
Sarah Routledge