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Multiyork enters administration, puts 500 jobs at risk

RBR Staff Writer Published 24 November 2017

UK-based furniture retailer Multiyork has entered into administration, putting about 550 jobs across the country at risk.

Duff & Phelps has been appointed as the administrators of Multiyork, which is based in Thetford, Norfolk. 

Multiyork was established in 1978 and initially operated in the Old Mill site in Mellis, a village in Suffolk.

The company ran into financial troubles after it could not repay its debts, as a direct consequence of operational losses.

During last year, the company had a debt of £1.9m, and it earned a profit of £479,000. In 2015, the company suffered a loss of up to £714,000.

Joint administrator Allan Graham stated that the business will continue its operations until a suitable buyer is found, which is believed to be a short period of time, although no specifics were given. He has also invited interested parties to come forward.

Other companies operating in the retail furniture sector also stated that sales have slowed down. Sofa-maker DFS said that its profits had fallen 22%.

Graham pointed out that the major reasons attributable to the situation is because of the falling customer confidence, less money at disposal to be spent on discretionary items, coupled with rising inflation has left shoppers more cautious.

Rising economic uncertainty in the country, increase in commodity prices, rising business rates and the fall in Pound’s value have also added to the cost of importing raw materials.

Image: Multiyork store in London. Photo: Courtesy of Philafrenzy/Wikipedia.org.