Flooring specialist Floors-2-Go has fallen into administration, The Independent can exclusively reveal.
The 132-store retailer has appointed Kroll as administrator yesterday, after Floors-2-Go succumbed to torrid trading in the home improvement sector and failed to find additional funds to safeguard its future.
The flooring specialist has become the latest retailer to hit the buffers this year, following the demise of discount book seller The Works, shoe chain Dolcis and furniture retailer Ilva.
Fraser Gray, Joanne Wright and Anne O'Keefe, Partners at Kroll's Corporate Advisory & Restructuring Group, have been appointed as joint administrators of Floors 2 Go Limited (which trade as Floors-2-Go). The Joint Administrators were forced to close 41 stores resulting in 97 employees being made redundant.
Kroll partner Fraser Gray said: "We understand that this is a difficult time for everyone involved and would like to thank customers, suppliers and employees for their continued support throughout the administration process.
"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."
Kroll has advised customers with concerns about their orders to contact +44 (0) 121 380 5015 where customer service representatives will do their best to assist with enquiries. It reassured customers that arrangements have been put in place to honour existing orders and deposits.
Alchemy Partners backed the £52.4 million acquisition of Floors-2-Go in December 2006.
Last month, Jon Moulton, founder of Alchemy Partners, denied that the retailer was heading for a financial crunch.
On June 25, Moulton said that Floors-2-Go's debt position was "fine" and denied speculation that it was about to appoint a restructuring firm to help it through what he called "torrid" trading in the home improvement sector.
However, a source close to Floors-2-Go said that trading had deteriorated. He said that sales for the week ending yesterday, July 20, had fallen below £1 million, which is below the £1.6 million it normally takes. "Trading has got worse," he said.