Marco Piacquadio.
BUSINESS restructuring experts in Milton Keynes have completed the sale of national soft furnishings retailer Julian Charles after the company entered administration.
A total 230 of 251 jobs have been saved as a result of the acquisition by Great Bedding Co Ltd of Julian Charles’ parent company Rectella Ltd’s business and assets.
Insolvency firm FTS Recovery’s team based at Knowlhill completed the pre-pack sale in an accelerated marketing process after its directors Marco Piacquadio and Alan Coleman were appointed as as joint administrators.
“As is typical when parachuted in, we were focused on seeking to rescue as many elements of the business as is possible, always front of mind being the position of the employees, consumers and other creditors and stakeholders,” said Marco.
“This was a relatively complex transaction with significant scale and the ability to move quickly was key. I am grateful to have achieved a really pleasing result given the circumstances and we wish the new owners and remaining staff and stakeholders the very best going forward.”
Julian Charles is a national multi-channel retailer of bedding, ready-made curtains, cushions, throws and home décor accessories. Founded in Lancashire in 1947, the company has 70 outlets across the UK and operates 41 stores as well as concessions such as Boundary Mill and in garden centres.
However it has suffered a number of economic headwinds in recent years which have resulted in cash flow difficulties and left it unable to meet all its current liabilities.
Aside from a significant drop in turnover, the company is mindful of the impact of the increasing tax burden, particularly those announced in last October’s budget, having a direct impact on its bottom line as a result of increasing employment costs.
FTS Recovery director Alan Coleman said: “A devastating combination of rising costs and declining consumer confidence have hit the UK’s retail sector hard in recent years, Julian Charles included.”
Legal advice was provided by HCR Law, led by restructuring and insolvency specialist Hayley Phelps. Marketing was handled by John Pye Auctioneers and Valuers.
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Online fashion brand is sold out of administration
FTS directors Marco Piacquadio and Alan Coleman have also completed the sale of in-administration online fashion brand In The Style, saving 87 jobs.
The new owner is Alps Sourcing, which has taken over the business after administrators were appointed in March.
In The Style had grown from a small home-based business to reach a value of £105 million at its peak in March 2021 and following AIM listing. However, troubled times followed, leading to the Manchester-based company being delisted and acquired by Baaj Capital in 2023, when it narrowly avoided administration.
Baaj has rolled its facility into the purchasing entity as a part of the transaction.
Formal insolvency proceedings were initiated after the business considered the impact of rising costs and various economic headwinds at a time when trading was not improving.
“The company’s balance sheet has been laden with significant debt for some time,” said Marco. “That debt has led to issues with cash flow and had an impact on suppliers.
“Since being brought in to help, our focus has been to seek to rescue as many elements of the business as possible. It is always difficult trying to achieve a rescue against the backdrop of a relatively high-profile matter, particularly where elements of the brand and goodwill are under daily scrutiny. We are really pleased to have secured this outcome and to have rescued so many jobs.”
It is hoped that the rescue will allow Alps Sourcing the platform to work again with key stakeholders, he added.
“This sale marks a turning point in the company’s fortunes and an opportunity to return it to a position of profitability and financial stability.”
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