Administration for Remnant Kings
DOZENS of staff have been made redundant after home furnishing store Remnant Kings went into administration. The firm, which started in Glasgow, said that although they were historically profitable, they have since suffered from declining turnover and trading difficulties in recent years caused by changing consumer habits.
A total of 32 staff have lost their jobs from the firm’s bases in Glasgow, Hamilton and Edinburgh.
Blair Nimmo and Alistair McAlinden of KPMG LLP were appointed as joint administrators on Tuesday.
Originally established in 1946, the company was incorporated in 1987 and are known for selling fabric for curtains, blinds, soft furnishings, dressmaking and quilting to the general public, small business and local authorities.
The directors previously sought to address the financial issues by closing loss making stores as part of a business restructure last year.
As part of this process, additional working capital support was provided by other associated companies under the control of the directors.
The administrators said trading losses and cash flow pressures continued to increase and, since early March 2020, the Covid-19 outbreak reduced customer footfall over recent weeks.
The directors closed the stores last weekend and placed the company into administration.
Blair Nimmo, Joint Administrator and KPMG’s UK Head of Restructuring, said: “Unfortunately, Remnant Kings Central Limited was unable to continue trading in light of significant liabilities and cashflow difficulties, having been affected by changing consumer habits, exacerbated by the Covid-19 outbreak.
“This has led to the redundancies which have been announced.
“We will be working closely with Skills Development Scotland via their PACE team to support all affected employees during this difficult time.”
A spokesman for Remnant Kings added: “Despite recent government measures to reduce the financial strain on businesses in face of the Covid-19 pandemic, the company is not in a position to meet ongoing critical payments in the face of nil sales income.
“Remnant Kings was started in Glasgow in 1946 and has been supported during this time by many dedicated and long serving employees and exceptionally loyal customers.
“We understand this is going to be a very challenging time for many people and we sincerely regret any negative impact this announcement will bring.”