TJ Hughes to call in administrator

TJ Hughes, which operates a store in Rochdale, has announced its intention to appoint an administrator as it teeters on the brink of collapse.

The discount store chain operates 57 stores nationwide, employing more than 4,000 people.

Its store in the Wheatsheaf Centre in Rochdale could now be under threat. 

TJ Hughes, which was acquired by private equity firm Endless in March, has found trading difficult following the loss of credit insurance.

Like-for-like sales are reportedly 19 per cent down, with suppliers having lost faith in the business model.

Reports suggest Endless, which has already ploughed £9million into the business, needs to inject a further £30million to ensure TJs is still trading by the peak September period.

The homewares sector has suffered heavy sales declines in recent weeks as nervous consumers put off purchases of big–ticket items such as fridges and televisions.

This sector has also been hit by January’s rise in VAT to 20 per cent and the decline in the housing market, which is discouraging people from improving their homes.

Elsewhere, the chocolate specialists, Thorntons, and coverings specialist Carpet Right have both announced a programme of future closures.

Thorntons have a shop on Yorkshire Street in Rochdale town centre whilst Carpet Right has a store on Whitworth Road.

It is not yet known whether the companies’ Rochdale stores will survive.

Centre Manager for the Wheatsheaf, Martin Ballard, was unavailable for comment at the time of publication.

Rochdale Town Centre Management was unavailable for comment at the time of publication.