Retail group Wynnstay has given a notice of intention to appoint administrators for its Just for Pets business.
There are 25 Just for Pets shops in its portfolio. In a statement the company said the trading environment had shown a “marked deterioration” over the past year.
It said: “Changes in consumer buying behaviour, coupled with additional sources of competition and greater cost pressures, have placed an increasing strain on the business and the subsidiary has become loss-making.
“It became increasingly clear that restructuring measures were required and, as announced in the company’s half-year results on 21 June, a review of the options for the business was commenced and the company recognised a goodwill impairment charge of £3.89m in relation to JfP.”
For the six months to 30 April, Just for Pets generated £7m of revenue, approximately 3% of Wynnstay’s total revenue for the period, and an operating loss of £250,000.
Wynnstay chief executive Ken Greetham said:”This has been an extremely difficult decision to make and we are saddened by the announcement of the notice of the intention to appoint administrators for the Just for Pets business.
“Having thoroughly investigated and pursued other options, it has been concluded this was the correct path to take, both for Just for Pets and Wynnstay, given the difficult circumstances in which JfP has found itself in recent years.
“We will be working closely with advisers to ensure that Just for Pets employees, customers, suppliers and Wynnstay shareholders are best served.”
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