Flooring retailer Floors-2-Go has gone into administration, blaming a falling housing market for its decline in sales.
The UK’s biggest seller of laminate and wood flooring was taken private just 18 months ago in a management buy-out.
Managers and private equity firm Alchemy Partners paid £52.4 million in December 2006 for Floors-2-Go.
But administrators were called in on Monday evening after sales fell by more than 20 per cent in recent months – largely due to a depressed housing market and a subsequent fall in spend on DIY.
Administrator Kroll has shut 41 of Floors-2-Go’s 132 stores and 97 staff have been made redundant.
Fraser Gray, spokesperson for Kroll, said: “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.
“Floors-2-Go has a strong brand, a well-dispersed nationwide network of stores, an established online presence and a contracts division, so despite the harsh trading conditions, we remain hopeful of selling the business as a going concern.
“Floors-2-Go will continue to trade whilst we review all options for the business.”
Kroll added that arrangements have been put in place to honour existing orders and deposits.
Headquartered in Birmingham, Floors-2-Go employs 450 staff.
Share this article:
What are these?