Furniture retailer Multiyork in administration
A national furniture chain which has a store in Shrewsbury has called in the administrators.
Multiyork employs nearly 550 people nationwide and runs 50 stores across the country including one in Castle Street.
The firm, which has a factory in Thetford, Norfolk, has had a presence in the town for many years.
The company filed net debt of £1.9 million with profits of just £479,000 in 2016, in a further sign of slowdown of the household goods market
Earlier this week the firm called in Allan Graham and Matt Ingram, of Duff and Phelps, and they were appointed joint administrators.
Multiyork is continuing to trade as normal for the next few weeks as it looked to complete orders ahead of Christmas.
Joint administrator, Allan Graham, said: "Trading conditions for UK retailers continue to be difficult due to a number of factors including economic uncertainty, rising commodity prices, increasing business rates and the fall in value of the pound which has increased the cost of importing raw materials and products.
“This appears to be leading to a sharp fall in consumer confidence and less money being spent on discretionary items. Multiyork could no longer meet on-going liabilities.
“We are hopeful we can find a buyer and we are asking interested parties to come forward as quickly as possible.
“We ask that customers who have placed orders be patient during this time and you will be contacted with further updates in relation to your order shortly,” he said.
He added that the current management of Multiyork would continue to work with administrators to review all orders placed up until November 22 with the intention that all orders would be completed.
The company’s current management team is continuing in their role and assisting the administrators, who say they are hopeful of finding a buyer for the business.
Multiyork had reportedly been put on the market by its major shareholder, the furnishings tycoon Charles Wade of Wade Furniture Group, which also owns beds maker Feather & Black.
The two brands are run as separate entities and the administration does not include the bed maker.
The brand, which was founded in 1978 and initially operated in the Old Mill site in the village of Mellis, Suffolk, was rescued from receivership by Wade in 1995.