81 jobs go as TJ Hughes shuts Lichfield site
A closing down sale has started at TJ Hughes' store in Lichfield after the company's administrators failed to find a buyer. The closure will result in 81 redundancies.
Joint administrators from Ernst & Young said the retailer's five remaining stores – in Doncaster, Bradford, Sunderland, Lichfield and Wrexham – will shut their doors for good on 31 August. A total of 263 employees will be out of work as a result.
"A purchaser for these remaining stores was not found, and regrettably we have had to schedule these final store closures," said Tom Jack, joint administrator from EY.
"We are extremely grateful to the employees and management at all the group's stores for their loyalty and support during this very difficult time."
Liverpool-headquartered TJ Hughes would have celebrated its centenary next year, but entered administration in late June after a trade creditor lodged a winding-up petition. At the time it traded from 57 stores and employed more than 3,500 staff.
Administrators have secured the sale of six stores Lewis's Home Retail, owned by Benross Group directors Anil and Amit Juneja, but buyers have shied away from purchasing other assets. The sales have, however, saved 700 jobs.
The discount chain was bought from Silverfleet by private equity group Endless in March, with retail entrepreneur Anthony Solomon brought in as executive chairman to help turn around the company's ailing fortunes.
But a report published by administrators last week highlighted the financial strain the business was under. The report said that the company made an operating loss of £7.1m in the year to 29 January 2011 against a turnover of £276.2m. In the 18 weeks to 4 June the retailer also made a net loss of £10.1m on sales of £69.1m.
EY has estimated that TJ Hughes' collapse will leave creditors about £338m out of pocket. Trade creditors are owed £326.4m, while HM Revenue & Customs is owed £5m. Administrators also revealed that claims from trade creditors continue to be submitted and unsecured claims could total more than £409m.
