TJ Hughes goes into administration
Discount department store chain TJ Hughes has fallen into administration. Around 4,000 workers now face an uncertain future while they wait to see if administrators Ernst & Young can find a buyer.
The 57 TJ Hughes stores around the country will remain open for the time being. Ernst & Young said it hoped to sell the business as a going concern telling customers that it was “very much business as usual”.
There are reported to be a number of potential buyers interested in acquiring the 99 year old business including Primark and retail veteran Sir Philip Green.
Tom Jack, joint administrator at Ernst & Young, said TJ Hughes had been forced into administration by the tough conditions in the retail sector during 2011.
“TJ Hughes has struggled against a backdrop of reduced consumer spending and increased competition. Whilst management have tried to reinvigorate sales performance and control costs, it has unfortunately not been possible for the business to continue to trade outside of insolvency,” Jack said.
The retailer’s collapse comes just three days after Jane Norman, the womenswear chain, filed for administration.
