News: Rosebys stores sold to Edinburgh Woollen Mill

The Joint Administrators of the Rosebys group of companies have sold 77 of the textile retailer’s outlets and all of its stock to Duvetco Limited, a wholly owned subsidiary of Dumfriesshire-based Edinburgh Woollen Mill. The sale of these outlets, which are located across the country, means that 495 jobs are saved as these employees will transfer to the new owner. However, 59 outlets will close, resulting in 310 redundancies. Howard Smith, Joint Administrator and KPMG Restructuring Associate Partner, said: "Clearly it is unfortunate that further redundancies have been unavoidable. But in difficult trading conditions, the sale of a number of stores has been secured, which will safeguard many jobs and help achieve a return for creditors." KPMG has set up a Rosebys employee hotline - 0845 094 1777 - to provide information and support to employees who have been made redundant. A number of employees from the Rotherham headquarters are being retained by the Administrators in the short term to assist with the transfer of stock and the realisation of property assets. Neither of the two Rotherham stores have been bought.

KPMG website

Rotherham

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News: Rosebys enters administration

The Rotherham based high street retailer of home textiles, Rosebys has gone into administration. The group has an annual turnover of £100m and employs approximately 2000 staff at its 280 stores. The head office is at Hellaby, Rotherham. Howard Smith, Richard Fleming and Mark Firmin of KPMG LLP Restructuring have been appointed as joint administrators. Howard Smith said: "The business is continuing to trade as normal while we review the financial position and seek a going concern sale. No employees have been made redundant to date. "In common with many retailers, the group has experienced difficult trading conditions, leading to continuing losses. Rosebys has recently sought to re-finance, but this did not prove possible in the current economic climate. We are looking for offers for the whole or any part of the business." Rosebys was acquired by Indian Company, Gujarat Heavy Chemicals Limited in 2006. In August, Retail Week reported that their credit insurance has been pulled by their suppliers, Euler Hermes. The Economic Times in India reported that their parent company, GHCL were restructuring and set to split Rosebys to create a retail business and a manufacturing business. Rosebys London stores are being launched across India this month. Rosebys operates two stores in Rotherham, in the town centre and at Parkgate Shopping.

Rosebys website
Rotherham

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News: Rosebys to launch Indian stores

Rotherham based home furnishing retail chain, Rosebys, is set launch in India under the name, Rosebys London. The Hellaby company, which was acquired by Gujarat Heavy Chemicals Limited in 2006 will open an initial batch of stores, expected to be between 20 and 40 outlets, this autumn, with plans to open as many as 700 stores across the country in the next three years. The group hopes to exploit the growing earning power of India’s burgeoning middle class and has hired advertising agency Saatchi & Saatchi to build the brand. "We are filling a huge gap and believe that Rosebys London will become the premium lifestyle brand of choice in this market. "There is a huge potential to be tapped in the affordable premium home interiors and furnishings space in India. Our aim is to target young working women and we plan to open about 700 stores in the next three years," Rosebys Director Nikhil Sen told PTI. On acquiring Rosebys, GHCL Chairman told India Retailing: "Through our Rosebys experience, we learnt that there are only two ways of growth in the business – either you follow the linear way of growth or you go for a quantum jump. We are not interested in linear growth."

Rosesbys website
The Times article
Trading Markets article

India retailing article
Rotherham

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