Hundreds of jobs go as Homeform enters administration
Administrators have laid off more than 550 staff at Homeform after the company, which owns Moben kitchens and Dolphin Bathrooms and has major operations in Bilston, went into administration.
Some parts of the business, including Sharps Bedrooms, have been bought back by Homeform's former owner Sun Capital Partners in a pre-pack deal.
Customers still stand to lose deposits worth a total £1.5m from the failure.
But administrators at Deloitte said more than 450 customers who did not use credit or debit cards or finance agreements to pay deposits would lose a total of £1.5m. A further 921 customers should be able to get refunds worth £2.6m from their credit or debit-card provider.
Homeform traded from more than 160 showrooms and concessions nationally and employed 1,208 people. Deloitte said the company had experienced "significant difficulties" due to the current economic climate, particularly in the kitchen and bathrooms markets.
The retailer follows the likes of North West chains Focus DIY, TJ Hughes, Silentnight and Henleys Retail to hit the buffers in recent weeks. The collapse of Homeform also dragged under Manchester creative agency The Market Creative last week.
Deloitte has sold Sharps back to a new company controlled by Sun, a deal that saved 627 jobs, including at its factory in Bilston, West Midlands, and offices in Camberley, Surrey.
The operations of Moben, Dolphin and Kitchens Direct have been closed down, although the administrators continue to market the brands for sale. A total of 557 staff have been made redundant.
Bill Dawson, joint administrator and partner in Deloitte’s restructuring services team, said: "The business has suffered from the extreme pressures currently hitting retailers of high value items, as customers shy away from big ticket purchases such as kitchen and bathrooms.
"The deal achieved with Sharps Bedrooms secures 627 jobs and also ensures that the new business is able to complete Sharps customer orders. A number of sub-contract fitters and designers may also benefit from the sale.
"We are now in urgent discussions with the key stakeholders and interested parties of Moben, Dolphin and Kitchens Direct in an attempt to sell all or parts of the businesses. We have written to all the employees with briefings to help them understand their position."
