A homeware retailer with 51 stores specialising in furniture, curtains and carpets has entered administration.
Paul Simon (London) Limited will continue to trade while administrators seek a buyer for all or parts of the business as a going concern.
The company employs approximately 550 staff across its stores, which are primarily located in out-of-town retail parks.
Lee Manning and Nick Edwards of Deloitte were appointed as joint administrators to the company today (2 April).
Manning, joint administrator and Deloitte partner, said: “We are working closely with key stakeholders, customers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.
“Like many other retailers, Paul Simon has been hit hard by the uncertain economic environment. In addition, its core business has been undermined by the increasing importance of online sales causing an erosion of margins.
“This was compounded by the impact of the recent widespread flooding which restricted many customers’ access to several stores. These issues made an element of the store portfolio unprofitable and led to a projected imminent cashflow deficiency resulting in the administration appointment.”