Bid to save jobs as TJ Hughes goes into administration

TJ Hughes: administration

TROUBLED trader TJ Hughes has gone into administration, but its directors have pledged to work towards saving as many jobs and stores as possible.

The news comes as a further blow to the discount retailers’ 4,000- strong staff who work from its 57 outlets, including one at Oldham’s Spindles Town Square shopping centre.

They learned on Monday that the firm, which is one of the anchor tenants of the shopping centre, was on the brink of appointing an administrator.

Ernst and Young were appointed yesterday, amid reports that TJ Hughes has been badly hit by falling customer spending and increased competition.

A statement released by the company’s owner, Endless, said: “We have provided TJ Hughes with working capital since March when it was about to fail, and knew then that pulling it back from the brink was going to be difficult.

“Trading at the business has continued to be significantly down on last year as a result of difficult retail conditions and the loss of supplier and credit insurer confidence.

“Sadly, a rescue of the company has not been possible and we will now focus on helping the administrator save stores and jobs.”

TJ Hughes was acquired by the Leeds-based private equity firm Endless, for a “nominal amount”, and ploughed £9 million into the once-thriving 99-year-old firm.

One option is that Endless could buy profitable stores back from the administrator, while Ernst and Young will seek to sell loss-making stores.

Shop workers’ union Usdaw is in contact with Endless in a bid to protect the interests of its members.