Ilva Furniture has gone into administration becoming the latest big-ticket retailer to be hit by the downturn, Retail Week can reveal.
The Icelandic-owned UK chain has hit the buffers after being forced into a “strategic withdrawal” from the UK market following poor trading.
The retreat follows continued uncertainty over the future of fellow furniture retailers ScS and Land of Leather.
Last week, Land of Leather organised£15 million of emergency funding. New Heights went in to administration in May
Ilva’s administration puts 400 jobs at the retailer’s head office, store and distribution network at risk.
Peter Saville, Simon Appell and Anne O’Keefe, partners at Kroll’s Corporate Advisory and Restructuring Group, have today been appointed joint administrators.
Saville said it is “business as usual” for the stores and that it would honour all existing customer orders.
He said: “The trading environment for all retailers is particularly tough at present but we are continuing to trade the business as a going concern. These stores have a strong brand identity and are situated in excellent retail locations. Although the retail sector as a whole is facing challenges at present, there are still many opportunities to succeed. We will be assessing the options for the business in the coming weeks.
“We fully appreciate that this is a concerning time for employees as well as customers, and we will keep all stakeholders as fully appraised as possible.”
Ilva paused its expansion in the UK in March last year after opening three stores in swift succession at Thurrock, Manchester and Gateshead.
In August, Ilva’s UK business was bought by Icelandic corporation Lagerinn which operates The Pier and is owned by retail tycoon Jakup Jacobsen.
Concerned customers should contact customer service representatives on +44(0)845 245 8285.