Published on 7 - July - 2011
Liquidators acquire TJ Hughes debtGA Europe has acquired Endless' secured debt due from TJ Hughes and will work with administrators Ernst & Young to liquidate stock from the retail chain's 57 stores.
Ernst & Young added that the move by GA Europe, a subsidiary of the Great American Group, will "not impact on the administration strategy".
Turnaround specialist Endless LLP took over TJ Hughes in March this year after the discount department store chain reported losses of more than £10m in 2010. The retailer has continued to report declines and called in administrators in June, blaming weak demand and the withdrawal of credit insurance.
Joint administrators Tom Jack and Simon Allport from Ernst & Young today announced the appointment of GA Europe as liquidators but stressed they are still attempting to sell ailing department store group TJ Hughes as a going concern.
Mr Jack said: "We are already in discussions with over 30 interested parties and we are encouraged by the strong level of interest in the business and its portfolio of 57 stores."
He added: "However, there are significant stock levels and we therefore must ensure we are also pursuing a strategy to trade this stock through the business, in case we cannot find buyers for all of the company's stores and employees. Promotional activity will therefore commence immediately in all TJ Hughes stores."
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