TJ Hughes to appoint outlet division administrators
Feb 24, 2020
Discount department store chain TJ Hughes is ready to appoint administrators for its outlet business with a report at the weekend saying eight stores will be included in the filing. The move will represent a “small number” of the firm’s total stores across the UK.
In a statement regarding the outlet division, the company said: “We are extremely saddened by the need to take this decision, and it hasn’t been taken lightly. However, the retail world is changing quickly, and it is necessary for our business to evolve.
It’s believed to be in wider talks with landlords and added that “we need to embrace this change to ensure our remaining businesses can grow strongly, at the same time we have to have the correct cost base, which is why we have to work very hard on our landlord relationships”.
As a result of its current actions, it thinks “the group will be on a far sounder footing and able to further protect its remaining businesses by being able to explore other strategic acquisitions, which will bolster the strength of the group, save jobs and provide greater security for the remaining group.”
TJ Hughes has had a troubled history and collapsed into administration back in 2011. It was bought out of administration by its current owners.
But as recently as late 2018, it had been upbeat, the Liverpool-based firm having swung back into profit and saying it was ready to take advantage of market opportunities following the collapse of some of its rivals. Its pre-tax profits had reached to £1.37 million for the year to January 31 2018, compared with a pre-tax loss of £0.71 million a year earlier. It’s hard to tell how it has done since with no full-year accounts having been filed yet.
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