News: Fabric Warehouse enters administration
Retail Week reports that Rotherham based homewares retailer Fabric Warehouse has gone into administration. The Rotherham business, which sold fabrics, ready-made curtains and other homewares, traded from 31 stores across the UK has its headquarters at Hellaby Industrial Estate. Neil Bennett, a director at Leonard Curtis, has been appointed as administrator and has sold 10 Fabric Warehouse stores to Calderia Retail, as well as the stock from a further 16 stores. Calderia will also take on the responsibility of completing customer orders in 21 stores. Administrator Neil Bennett said: "By late last year the business was already in difficulties, due, in the view of the directors, to consecutive interest rate rises and a challenging retail environment and the business in its current form became unsustainable." In October, the company instructed restructuring firm Hilco to examine a potential refinancing in an effort to raise funds for a concession assault. Fabric Warehouse was bought by The Furnishing Place from the Homestyle Group in 2004 along with sister company, Roseby's. Roseby's was subsequently sold to the Indian firm GHCL in 2006. In the year to April 2007, Fabric Warehouse had a turnover of about £25 million. Last week, The Yorkshire Business Insider reported that Roseby's had agreed £10m of working capital facilities through asset-based lender Burdale secured against stock.Fabric Warehouse website
Retail Week article
Rotherham
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From The Liverpool Daily Post:
14/5/08
KNOWSLEY-BASED cushion manufacturer Caldeira says it has “huge plans” to expand into the retail business after it bought a chain of 14 stores out of administration.
Its new subsidiary, Caldeira Retail, has bought Fabric Warehouse, and managing director Tony Caldeira says he is confident despite the challenging retail climate.
Caldeira Retail will be run from Caldeira’s Knowsley Business Park base and Mr Caldeira said new jobs would be created there as a result of the deal.
Fabric Warehouse, which sells fabrics, homewares and curtains, went into administration earlier this month blaming interest rate rises and a “challenging” retail environment.
Caldeira Retail initially bought 10 of the company’s 31 out-of-town stores, as well as the stock from a further 16 outlets. This weekend, it bought a further four stores.
Mr Caldeira said: “Most of the stores are in the south of England. The headquarters of the new business will be in Knowsley and the stores will be run from Knowsley.
“Fabric Warehouse was the UK’s leading fabrics retailer.
“This is a big move for us. The sales of the Fabric Warehouse stores are double the turnover of the UK company.
“We’ll be looking to take on some staff here to help co-ordinate the retail operation. It’s not on the scale of Ethel Austin but it’s some positive news for retail in Merseyside.”
The stores will continue to trade under the Fabric Warehouse name.
Fabric Warehouse parent company Fabric Warehouse Operations had a turnover for the year to April, 2007, of around £25m.
http://www.liverpooldailypost.co.uk/business/business-local/2008/05/14/firm-buys-14-shops-in-new-venture-64375-20906104/
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