SP Group have become the latest firm to be hit by the UK high street crisis. The Redditch based group produce signs and store displays for shops.
As customers cut contracts, hoping to save costs, sales for SP group fell. Marks and Spencer’s, JD Sports and Sainsburys are some of the large customers lost. Further to this, the company was acquired in a £6m deal with SelmerBridge in early March, which is believed to have brought a decline in customer support. Additional to a sales slump, and the loss of customer support, debts were unable to be paid, leading to financial problems and so administrators Duff and Phelps were called in to help.
The 60-year-old company is now looking at options with administrators, to try and save as much of the business as they can. However, joint administrator, Allan Graham, remarks this could lead to as many as 371 jobs at risk. It is understood that clients have been told that trading will be ceased by the end of the month.
This all comes at a time of an online shopping trend, with political uncertainty and low consumer confidence. Other high street companies, including New Look, Mothercare, House of Fraser and Marks and Spencer’s have also reported some risk.
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