Furniture retailer Durham Pine today said tough retail conditions had forced it to call in administrators.
The Sunderland-based group, which employs around 200 staff, said it did not have enough cash to carry on after falling victim to intense competition in the sector.
It comes less than a month after fellow operator Furnitureland went into administration, as the slowdown in the UK housing market hits demand among consumers for big-ticket items.
Administrators at PricewaterhouseCoopers said they hoped trading would continue while seeking a buyer for the business.
Durham Pine, founded by chief executive John Marshall 21 years ago, has 31 outlets mainly in the North of England and Scotland.
It also has franchise stores which were not affected and were trading as normal.
Joint administrator Ian Green said: “Over the last twelve months the directors and management of the group have worked hard to restructure the business to cope with an increasingly competitive market.
“Unfortunately, this pressure combined with a deteriorating retail market, has led the directors to conclude the group does not have sufficient funds available to it to support ongoing operations.”
He said the administrators would be looking at outstanding orders as “a matter of urgency.”
Customers concerned about orders were advised to contact their local store.
Mr Marshall said every effort was being made to secure as many jobs as possible and that he hoped to see a “viable business” continue to trade.
He said: “It is with great regret that after 21 years running a successful retail operation we have found it necessary for part of the group to go into administration.”
The business has an annual turnover of around £30m.
References: EGi News 18/10/05
