Fri, 14 Jun 2019 | ADMINISTRATION
The Yorkshire Linen company has been forced to shut its doors and appoint administrators after encountering financial difficulties and tough trading conditions on the high street.
The company, which is the trading name of The Towel Rail Limited, called in insolvency specialists BDO LLP to handle the administration process, with partners Francis Graham Newton and Sarah Megan Rayment appointed as joint administrators.
Founded in 1993 with a single store in Halifax, the home furnishings company specialised in the sale curtains, cushions, bedding, and throws. It grew to operate 19 stores across the North of England, including in Hull, Leeds, Harrogate, and Huddersfield, but as a result of the administration, Yorkshire Linen was forced to cease trading with effect immediately.
The business underwent a management buyout in April 2016 and reported a turnover of over £10 million and profits of £170,000 in 2018. However, the company undertook a CVA in February this year, forcing it to close eight of its stores as a result.
Business restructuring partner at BDO, Graham Newton, commented: “Extremely unpredictable market conditions, coupled with the well-documented challenges facing high street retailers have had a significant negative impact on trading in recent months. Despite the considerable efforts of management and their team, it has not been possible to secure a sustainable future for the business.
“As joint administrators, we will be taking all necessary steps to maximise the value of the assets for the benefit of all creditors. We will also ensure that employees impacted by the administration receive the support they need.”
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