Derry's department store in Plymouth facing closure

Derry's department store in Plymouth went into administration earlier this month.  Consultants MCR have now said that Derry's, and another 8 stores across England will close within 4 weeks if another buyer cannot be found.

Sarah Bell, partner at MCR, said it was deemed that the nine stores - including shops in Clacton-on-Sea, Colchester, Dovercourt and Witham in Essex, Stowmarket in Suffolk, Norwich and Sunderland - should close following a financial review.  A total of 335 jobs would be affected, including 80 at Derry's alone.

She said the stores "were loss-making and could not continue to trade in the short-term without implementing immediate cost saving measures".

Ms Bell added: "There is an opportunity for interested parties to come forward and rescue the remaining business as a going concern."

Vergo Retail Ltd, who took over the Derry's store in February 2009, blamed a "difficult trading environment during the economic downturn".

Vergo also owns Homemaker stores in Devon - including Exmouth, Kingsteignton and Cothill on the outskirts of Plymouth - as well as one in Launceston, Cornwall.

No announcement has been made about their future.

Posted at 08:10PM May 12, 2010 by Kelly Board in Insolvency  |  Comments[0]