CW Sellors, a Derbyshire-based jewellery retailer, has entered administration, with Lee Causer and Ben Peterson of BDO appointed as joint administrators. The appointments followed the filing of a notice of intention to appoint administrators via Browne Jacobson. A connected entity, Cessbrook Investments, has also entered administration.
The business, founded in 1979, operates retail outlets in Ashbourne, Bakewell, Matlock, Shrewsbury, York and Whitby. As part of the administration strategy, the Whitby operations will be consolidated into a single store, W Hamond, with four stores closing. All other locations continue to trade. Online orders are not currently being accepted, and the administrators are seeking a purchaser for the business.
The company experienced cash-flow pressure following investment in new manufacturing and training facilities, alongside rising overheads and reduced demand during the cost-of-living crisis. Thirty-six employees have been made redundant, with approximately 50 retained to support ongoing trading during the sale process.
Lee Causer, Joint Administrator at BDO, said:
“The business has been experiencing challenging trading conditions, with rising overheads and lower demand for its high-end products.
“Regrettably, 36 people have been made redundant with immediate effect. The company’s remaining 50 employees will be retained for a period to assist the Administrators to trade the business whilst a buyer is sought.”
In its most recent accounts to April 2024, CW Sellors reported turnover of £28.5m, down from £30.4m in the prior year, and losses in excess of £2.1m. The business employed around 190 staff at that time.
Directors noted that the year was impacted by the death of the founder and managing director in September 2023, alongside a tightening consumer environment.
The accounts stated:
“This has been a unique and challenging year for the business. We lost our founder and managing director in September 2023 following a period of illness, and the business initially found it difficult to adapt to that loss. This coincided with a tightening market as the cost of living crisis began to take hold.”
The company continued to invest during the period, including the development of the Waters View site near Carsington Water, intended as a new headquarters incorporating manufacturing, showroom, and hospitality facilities.
The directors said:
“Notwithstanding these challenges, the business continued to invest for the future…”
However, the Waters View development was subsequently placed on the market via Savills after construction costs increased significantly, with the overall build cost doubling following Covid-related inflation. The company concluded that completion of the project was no longer financially viable.
As CW Sellors enters formal insolvency, stakeholders often face significant uncertainty. Here is a breakdown of the legal framework and what it means for those affected.
Administration is a powerful statutory process governed by the Insolvency Act 1986. It is triggered when a company is insolvent and can no longer meet its debts. An independent Licensed Insolvency Practitioner (IP) is appointed to take control from the directors. A key feature is the statutory moratorium—a legal “shield” that instantly stops all legal actions, such as winding-up petitions or bailiff visits, providing the “breathing space” needed to rescue the business or achieve a better result for creditors than immediate closure.
The law dictates a strict hierarchy for the distribution of funds. Fixed charge holders (typically banks with security over property) are paid first. Once the administrator’s fees are covered, preferential creditors are next; this includes employees (for specific arrears) and HMRC for taxes like VAT and PAYE. Following these are floating charge holders, and finally, unsecured creditors—which include trade suppliers and customers—who are at the back of the queue and frequently receive only a small fraction of their debt.
Entering administration does not mean all jobs are instantly lost. For the first 14 days, the administrator assesses the company’s viability and may make redundancies. If a member of staff is kept on past this 14-day window, the administrator “adopts” their contract, meaning their ongoing wages and rights become a priority expense. Those made redundant can claim for unpaid wages and notice pay via the Redundancy Payments Service if the company has insufficient assets to cover these costs.
Suppliers and customers are generally unsecured creditors. Suppliers should stop granting credit under old agreements and negotiate “pro-forma” (upfront) terms for any new supply to the administrator. For customers, deposits and gift cards are rarely honoured. However, those who paid over £100 via credit card may be protected under Section 75 of the Consumer Credit Act and should contact their bank immediately to initiate a claim.
Written ByRobert Moore
Marketing Manager
Rob has over two decades of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at RMT to develop strategic marketing programmes to support the business plan and drive more company rescues.
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