A British homeware chain has been saved after it collapsed due to months of increasing losses. Fired Earth, a home interiors brand known for tiles, paints, and bathroom products, closed all its showrooms across the UK after collapsing into administration in November.
The chain closed all 26 of its UK stores, as well as their showrooms, resulting in the loss of 133 jobs. However, the store has since been saved by Topps Tiles, in what management has called a “significant opportunity”.
The £3million deal made between the two retailers includes Fired Earth’s brand name, online business and approximately £2.5 million worth of stock, reports The Sun.
Topps Tiles hit annual sales of almost £300 million and returned to pre-tax profit, despite a more challenging climate for customers. It also revealed it had been experiencing slower growth in recent weeks, with sales up 3.3% in the past nine weeks, down from the 5.3% expansion seen over the last financial year.
The group said spending has “moderated due to weaker consumer confidence”, as households continue to rein in splurges on big home projects.
However, the buy could help change things, as the retailer said that the premium brand will help boost its digital presence and allow it to reach both homeowners and trade customers.
It also aims to attract customers seeking more upscale designs, breathing new life into a beloved British brand. The deal comes as good news for shoppers who feared that the brand would disappear from high streets permanently.
In the last few years, the high street has taken a massive blow with more and more major retailers shutting down branches across the UK.
The closures have been caused by a combination of factors, including changes in consumer habits, rising operational costs, inflation and the cost-of-living crisis.
The latest survey, conducted by the Confederation of British Industry (CBI) between October 24 and November 13, shows that recruitment plans turned negative late last year and have remained so ever since, with a decline expected for at least the next three months.
Alpesh Paleja, the CBI’s deputy chief economist, said that uncertainty ahead of the November Budget caused many businesses to pause their decisions, while “persistent cost pressures” have plagued companies throughout the year.
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