UK furnishings chain closes 11 shops after crashing into administration – 70 jobs misplaced | UK | News | EUROtoday

A preferred household furnishings chain has entered administration, forcing the closure of 11 shops and placing dozens of employees out of labor. Pagazzi Lighting, famend throughout Scotland and Northern England, was based practically half a century in the past and has change into a go-to specialist for ornamental lighting, mirrors and residential equipment.

However, amid rising prices and a stoop in excessive avenue spending, the Thornliebank-based enterprise has been compelled to close the doorways to 11 of its retail shops and axe 70 employees simply days after it appointed directors. Despite working for 45 years, the corporate’s earlier success was not sufficient to defend it from a “sustained period of poor trading” and mounting monetary pressures, in line with specialists.

Despite a significant restructuring solely two years in the past, George Lafferty of BTG was appointed administrator final week amid Pagazzi Lighting’s ongoing cashflow issues amid elevated working prices and diminished client spending.

Prominent web site closures embrace Braehead Shopping Centre in Glasgow and Uddingston, south-east of Glasgow metropolis centre. Administrators confirmed the 11 affected shops formally closed on Wednesday (March 4), in line with The Sun.

Thomas McKay, managing accomplice of BTG, stated: “The retail sector has seen some very tough months of late in Scotland and this has also affected the lighting sector, mainly due to increasing competition and high trading costs.

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“Reduced margins, slower consumer spending and rising operating costs are creating challenges for many high street retailers, and unfortunately, these are the main factors that saw the Pagazzi stores and concessions no longer able to trade.

“The 11 affected stores closed on Wednesday, after BTG consulted with staff about the anticipated closure. Sadly, there have been 70 redundancies arising from the unavoidable closure of the retail outlets that were no longer able to trade.

“We are working closely with these individuals affected to assist them with access to their entitlements in conjunction with Partnership Action for Continuing Employment (PACE) and the Redundancy Payments Service, as we provide these staff members with the support and advice they need.”

The firm’s on-line division, Pagazzi Lighting (Web) Limited, has stepped in to accumulate the enterprise and its belongings, that means the agency will live on – in a diminished kind – on-line and thru its remaining stores.