Furniture Retailer Falls into Administration

7th February 2018.

Another retailer is added to the corporate black-list, as furniture retailer Warren Evans falls into administration.

The fall of the furniture chain has put its 14 stores, and a factory at Walthamstow, at risk. After failing to find a buyer to rescue the firm from disaster, administrators Duff and Phelps have been brought in. Warren Evans is the latest in a very long list of bust-up retailers, and it is not even the first furniture retailer after the demise of Multiyork last year.

Here at the Credit Protection Association many of our members have feared the fallout from collapsed retailers like Warren Evans. The firm’s strong position in the sector led customers to assume their reliability and pursued business with them as a result. We have always encouraged our members to check, double check and triple check their customers to ensure that their financial standing is reliable, this means filling out credit reports, monitoring their business on a regukar basis, and keeping open communication with them. You want to have the option to scram if you see another Warren Evans coming your way.

According to recent reports, Warren Evans was seeking a buyer in January, with the aim of securing a sale by the end of March. It appointed Duff and Phelps to handle the sale, but the firm instead went on to handle the firm’s administration.

“Warren Evans is rightly recognised as one of the UK’s leading bed, mattress and furniture retailers, but trading conditions are exceptionally challenging with the business hit by rising manufacturing costs and the continued squeeze on consumer wallets and confidence”, said administrator Allan Graham.

Analysts have predicted a raft of retail administrations this year as businesses face unprecedented costs pressures and a significant change in consumer spending habits.

Non-food retailers have been some of the hardest hit, with many unable to survive in a highly competitive environment that encourages heavy discounting. This morning, New Look unveiled a 10 per cent slump in sales, which it said was due to offering much of its stock to shoppers at a discount price.

Consumer spending habits have transformed. Shoppers no longer indulge in extensive shopping sprees, and instead scour the shops for discounts and sales. This has put a strain on retailers, who cannot afford to provide consumers with discounted stock throughout the year. Online retail has proved a worthy opponent as many have stopped visiting their stores altogether, preferring the comfort of their own home and special online retail prices. Warren Evans further highlights the change in consumer behaviour, with less money being spent on big-ticket items like beds and dining room tables.

Here at the Credit Protection Association we have heard from our members the obstacles the retail sector is encountering. Consumer behaviour is unlikely to alter drastically, so we recommend business owners adapt. If people aren’t visiting your store, advertise. Utilise social media and digital marketing to put your name out there. A consumer may not want to buy a bed when they’re shopping for vegetables, but when they’re sitting at home browsing Facebook on their laptop, they may notice how their bed springs dig into their back more than they remember. To overcome this retail slump, we must all embrace the digital customer.

The failure of Warren Evans also highlights the importance in knowing exactly who you are doing business with. CPA offers credit reports and monitoring systems to ensure you are left out in the cold like the victims of Warren Evan.

Contact CPA with the details below!

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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