Home furnishings retailer Paul Simon has collapsed after the recent flooding meant shoppers could not reach some stores, hitting revenue.
The 51-store retailer has made a statement on its website confirming that Deloitte has been appointed administrator. The company employs 550 staff.
Paul Simon’s website was down this morning. The retailer, which specialises in curtains, did not return calls when contacted by Retail Week.
Deloitte’s Lee Manning, who is working on Paul Simon’s administration, told Retail Week that the inability of shoppers to reach some stores due to the floods “took a big chunk of revenue out” and hit profits.
He added: “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.”
Paul Simon had been running a 50% off sale, plus an extra 20% off selected items, since January.
Deloitte said it will continue to trade Paul Simon while seeking a buyer for all or parts of the business as a going concern. Manning added that all Paul Simon stores will remain trading and that parties interested in the business have already come forward.