News - South West

All stores close as Mostyns enters administration

Soft furnishing business Mostyns has closed all of its stores after entering administration less than a year after the business was saved in a pre-pack deal.

Steve Adshead and Greg Palfrey of Smith & Williamson have been appointed joint administrators of Christchurch-based Mostyns Curtains Ltd.

This company was formerly known as WDCI Ltd and acquired the business and assets of Mostyns Ltd and Mostyn Group Ltd after they entered administration in September 2012. It paid £398,792 for the assets.

But the administrators said Mostyns Curtains was hit by "immense online competition" in the soft furnishing business.

"Despite a restructuring of the business in September 2012, the difficulties have sadly proved insurmountable," the administrators added.

The stock of Mostyns, which is the company's principle asset, has been sold to an unnamed buyer.

Smith & Williamson said it was not possible to sell the business as a going concern and there was no other choice but for it to enter administration with all stores closing.

The factory and customer services department are to continue on a scaled-down basis for the next few weeks in order to fulfil existing orders.

Mostyns could trace its history back to 1950. When the business collapsed in 2012, creditors were expected to lose out on more than £2m.

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