Rapid Hardware, the huge DIY and homewares department store in Liverpool, is appealing for a "white knight" investor after it collapsed into administration yesterday.
The company held last-ditch talks with its bank at the end of last week but failed to strike a deal. Royal Bank of Scotland has now appointed finance specialist Duff & Phelps as administrator, but the store remains open for business.

Managing director of the family-run store, Martin Doherty, gave his 90 devastated employees the news yesterday afternoon. He told the Liverpool Echo that he was "desperately sorry for staff and gutted at the way things have turned out. Neither staff nor management could have tried any harder or done any more."

But he says that even at this stage he is hoping to find an investor to put together a rescue package for the business.

Rapid has been trading in Liverpool since 1971, concentrating on a DIY and garden offer when based at its original Renshaw Street premises. But in August 2009 it went for dramatic expansion, moving its entire operation into the former John Lewis building in the city centre.

The 100,000sq ft store allowed it to grow its offer, which now encompasses not only DIY, decorating and gardening but furniture, kitchens, bathrooms, electrical appliances, lighting and home furnishings, along with a cafe. Rapid also trades online.

However, expansion coincided with the economic downturn, and, filing accounts at Companies House last July, the company said: "The directors believe the turnover of the business has been severely hampered by the difficult economic climate, which has seen consumers' disposable incomes being squeezed, spending cuts and increased unemployment levels."

Sales were just under £11.3m in the 74-week period covered by the accounts, compared to £7.45m in the previous 52-week period - up 6.8% on an annualised basis.

But a plunge in gross margin from 37% to 25.9%, coupled with a bill for £170,000-worth of delapidations at Renshaw Street and a £120,000 refurbishment investment in the new store, resulted in a net loss of £1.75m for Rapid Hardware, and of £2.2m for Rapid Group Holdings.

The directors said at the time that they had now taken action to make "significant improvements" to stock control, buying procedures and pricing.

No one at Rapid Hardware was available for comment today.