Fabric Warehouse is latest to be unravelled by crunch (From Daily Echo)

Fabric Warehouse is latest to be unravelled by crunch

8:34am Thursday 8th May 2008 in

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CURTAINS to cushions retailer Fabric Warehouse, which has three Hampshire stores, has become the latest victim of the credit crunch, collapsing into administration yesterday.

Workers at the Southampton branch of the homeware chain are safe after it was sold to Caldeira Retail along with an outlet in Waterlooville and a further eight UK stores.

Negotiations with a buyer for the Winchester branch are also understood to be at an advanced stage.

Customers who have paid deposits at these stores are likely to find their money safe and orders fulfilled.

Based in Rotherham, Yorkshire, the business traded from 31 stores from Plymouth to Edinburgh with a turnover of £25m. Its collapse is just the latest in a series of retailers with Hampshire operations to fall victim to the credit crunch, including shoe shop Dolcis, discount fashion chain Ethel Austin and toy shop Toyzone.

Administrator Neil Bennett, of Leonard Curtis, said: "By late last year the business was already in difficulties, due, in the view of the directors, to consecutive interest rate rises and a challenging retail environment and the business in its current form became unsustainable.

"We have now completed the sale of ten stores to Caldeira Retail Limited who will buy the stock in these stores and take over the employees, as well as buying the stock of a further 16 stores. Caldeira is also taking over the responsibility for completing customer orders in 21 stores. In addition we will be working alongside the management of Fabric Warehouse to complete the remaining customer orders in the remaining stores where deposits have been paid. This is important because it means that customers who have paid deposits will not lose out.

"A further store has been sold to Remnant Kings Central Limited. Finally, we are currently negotiating the sale of four further stores, which we will keep open for the time being, with the aim of maximising the return to creditors and saving as many jobs as possible. Unfortunately in the current economic climate it has been necessary to close the remaining stores."