Shops set to shut in Traesko turnaround

Underperforming furniture business Traesko is expected to shut stores after being placed in administration by its new owner, retail trouble-shooter Hilco UK.

Hilco acquired the 'upmarket Ikea-style' business, trading from 24 eponymous stores, from Danish owner Bodilsen for an undisclosed sum. Hilco UK chief executive Paul McGowan said: 'The situation is not straightforward because the company has been in decline for a number of years. I think it is unlikely we will be able to save all the stores.

'Traesko has been trading below expectations for some time and attempts to restructure it have failed to achieve the desired turnaround.'

Most recently, Hilco took charge of Ciro Citterio, which it sold after eight months. Hilco has parachuted in staff to run the Traesko shops and many have gone on Sale to clear excess stock.

McGowan said the portfolio was mixed, varying between 2,000 sq ft and 4,000 sq ft (185 sq m and 370 sq m), and in secondary high street locations, which is at odds with the brand profile. Options under consideration include building a concessions business.

'We are reviewing the performance of each store to decide what the next step is,' added McGowan. 'We hope to put a recovery plan into action over the next couple of weeks.'