Specialist retailer Floors 2 Go has been put into administration and part of the business has been bought by a new company.
Administrator Senate Recovery told local newspapers in the Midlands, where Floors 2 Go is headquarted, that 53 stores have closed with the loss of almost 200 jobs.
However 35 shops are still trading, and 162 jobs have been saved, by the sale of part of Floors 2 Go to specially formed acquisition vehicle Nixon & Hope.
Senate Recovery’s Ian Pankhurst told the Sunday Mercury that Floors 2 Go’s sales had plunged in recent months.
He said: “There are a number of factors, including competition within the industry and increased Internet sales, but the main reason is the general downturn over the last 12 months, and a lack of disposable income from consumers.
“Sales have nosedived, particularly in the last 12 months, and the company was not able to operate at a profit.”
The names of the investors behind Nixon & Hope have not been disclosed.
Flloors 2 Go was owned by members of the Hodges family who had themselves bought the retailer out of administration.
As recently as January Floors 2 Go bosses spoke of opening as many as 60 more shops after injecting £3.3m into the business.