Habitat has put 30 of its stores into administration with the other 3 in central London being sold to Home Retail Group, the owners of Argos and Homebase. The deal is reported to be for £24.5m.
Habitat has said that the 30 stores would continue to trade as normal for 6 months while the administrators conducted talks with potential purchasers.
The company has said that it has found the retail environment very challenging and in a statement it said; "A return to profitability for the business in the UK appears unlikely in the near term as many of the stores are expensive and poorly located for a furniture retailer,"
It also promised to fulfil all existing orders and protect customer deposits. This is good news as other retailers have not been in a position to do this.
So our earlier blog of crunchtime for retailers has been borne out by events....
If you are a struggling retailer see our page on how a CVA can help.