The company called in administrators after facing difficult trading conditions and suffering with cashflow. New Store Europe UK provides services to a number of high street retailers, with its headquarters based in Harlow.
Mark Orton and Will Wright of KPMG have been appointed joint administrators and are now considering all rescue options for the company while it continues to trade.
Wright commented, “The group had recently experienced significant trading difficulties across Europe, culminating in the parent company, New Store Europe AS, entering into insolvency proceedings in Norway on Friday”.
“Against this backdrop, the UK business had also come under severe funding pressures. Unfortunately, alternative funding outside of the previous parent company arrangements could not be secured in the time available, resulting in our appointment as administrators”.
“All staff are currently being retained to enable us to support customers in the short-term, while we seek a buyer for the business and its assets. We would encourage any interested parties to contact the joint administrators as soon as possible.”
UPDATE: 15/10/2014 – Today, it’s been announced that 231 members of staff are to be made redundant, while 69 employees will be kept on to assist with the wind down of the business. Will Wright has said, “Unfortunately, we have been unable to secure a sale of any elements of the business to date, and the financial position of the company has meant that we have had to make a significant number of redundancies.”
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee of an insolvent business. There is a link at the end of the video to the Government website which expands further on what you need to know.