Furniture retailer Dwell ended weeks of speculation today by closing its stores and ceasing to trade online, leaving some 300 jobs hanging in the balance.
Media speculation has been rife that insolvency practitioners at Duff & Phelps are set to be appointed to handle the case, although no official statement has yet been released to the press.
The troubled retailer – had operated 24 stores – and was known to be seeking a buyer for some time. In May, Argyll Partners was hired to identify possible suitors.
However, reports have since surfaced that potential buyers have been waiting for the company to enter a formal administration process before placing a bid.
Founder Aamir Ahmad and restructurers GA Europe are believed to be among the potential suitors to acquire the business through a pre-pack administration process.
Dwell Retail Limited was established in 2002 and losses for the three years to January 2012 were £5.6 million.
Independent analysts at Company Watch had last week put the negative working capital at £5.6 million from the accounts to January 2012. This equated to a corporate negative net worth (assets minus liabilities) of £4.7 million.
The company’s headquarters and distribution centre is in Milton Keynes and it had grown from a single store in south London in 2003.