Floors-2-Go rescued from administration
Article Date: Aug 18 2008Troubled retailer Floors-2-Go, which went into administration last month following the failure of a management buy-out backed by VC firm Alchemy Partners, has been bought by flooring and carpeting entrepreneurs, the Hodges brothers. The deal has saved 200 jobs after the administrators, Kroll, made 91 staff redundant.
Financial details of the transaction were not disclosed. Robert and Richard Hodges, who run another flooring retailer, FloorMyHome, will run the Floors-2-Go stores alongside their existing brand.
Kroll had closed 41 Floors-2-Go stores out of an original 132, continuing trading at the remainder. The Hodges brothers have bought 80 stores.
James Trevis, a partner at law firm Eversheds, which advised the purchaser on the deal, describes it as a ‘last-minute rescue’.
He adds, ‘The retail sector is under great pressure at the moment, and we are seeing a number of corporate failures. This does, however, mean that for entrepreneurs who know their sectors there are some significant opportunities.’
