The sector has had its fair share of collapses this year, which has resulted in some of the industry’s biggest acquisitions.
As the year draws to a close, Retail Gazette takes a look back at the retailers that went bust over the past 12 months.
Homebase
Homebase became the latest casualty on the high street last month when it plunged into administration after failing to secure a new buyer.
The home and DIY chain called in administrators at Teneo, the firm it had been working with to explore its cost-saving options after it sunk to an £84m loss in the year to January 2023.
Homebase’s brand name, intellectual property, and up to 70 of its UK stores was quickly snapped up by The Range and Wilko owner CDS Superstores in a pre-pack deal for £25.6m – a move that leaves 49 stores and around 2,000 workers at risk of redundancy.
The retail giant said the DIY chain’s brand will continue to run online, and the acquired stores will continue to trade as Homebase over the coming months but will re-open as The Range with a “much broader choice across garden, showroom and DIY categories”.
It is understood that M&S and Kingfisher are considering acquiring some of the chain’s remaining stores.
CTD Tiles
Tile supplier CTD Tiles was rescued from administration by Topps Tiles in August.
Topps acquired the supplier’s brands including CTD Tiles, CTD Trade and CTD Architectural Tiles, 30 of its retail stores, selected stock and all related intellectual property.
The retailer said CTD was “complementary” to its existing businesses and that the acquired stores and assets provide it with “the opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the architect and designer segment”.
However, the deal did not include 56 CTD Tiles stores, which administrators at Interpath confirmed will be disposed of through the administration process.
The acquisition invoked ire from one of Topps Tiles major shareholders, with MS Galleon’s managing director Piotr Lipko slamming the deal as “unequivocally irrational” and “highly detrimental” to the interests of the company.
Carpetright
Carpetright collapsed into administration in July after it failed to secure new investment.
The flooring giant was subsequently sold to its largest rival Tapi, which acquired its intellectual property, two warehouses and 54 of its stores.
Tapi said that saving the entire business was “unviable” as Carpetright had been materially loss making for a number of years and had racked up “significant debt”. It also cautioned of how the Competition and Markets Authority would view a larger deal.
At the time of its collapse, Carpetright owed at least 11 retail businesses including B&M, Furniture Village and Lidl nearly £3.5m in outstanding rent charges and some 21,000 customers £8m in outstanding orders.
It’s not the first time that Carpetright has found itself in troubled waters, with the business launching a company voluntary arrangement (CVA) in 2018 in an attempt to bring its losses under control.
The Floor Room
Carpetright’s administration quickly triggered the collapse of sister firm The Floor Room.
The flooring specialist’s 34 John Lewis concessions, standalone London store and online operation was closed by administrators at PwC “with immediate effect” in August, resulting in 201 redundancies.
Following its collapse, John Lewis said it would proactively offer roles where it can to its former partners at The Floor Room, who transferred across when it opened the concessions in 2022.
Smiffys
Fancy dress manufacturer Smiffys was snapped up in a pre-pack deal by US gifts and fancy dress specialist Ad Populum at the start of July.
The retailer, which has stores in Leeds, Liverpool, Newcastle and Oxford, ran into financial difficulty during the pandemic, which led to a drop in demand for its costume and party products.
PwC partner and administrator Jane Steer said at the time: “Smiffys is a popular brand that has been operating in one form or another since 1894, but sadly, like many other retailers, it was impacted by the after effects of the pandemic.
“The buyer, Ad Populum, will add Smiffys to its comprehensive range of brands which includes extensive experience of the fancy dress and toy markets.”
Ted Baker
Ted Baker found itself in trouble in April when the brand’s UK operator No Ordinary Designer Label called in administrators.
No Ordinary Designer Label (NODL) – which licenses the brand in the UK and Europe from Authentic Brands Group (ABG) – collapsed after ABG terminated its relationship with AARC, the Dutch firm that ran the brand’s UK operation the month before.
ABG chief strategy and transition officer John McNamara said at the time: “Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome.”
The fashion chain was forced to shutter all 46 of its stores and cut more than 700 jobs by the middle of August.
Authentic announced the following week that its US partner for Ted Baker United Legwear and Apparel (ULAC) would extend its responsibilities to run the UK operations as well. It relaunched the brand online last month.
Matches
Frasers Group put luxury fashion etailer Matches into administration in March just three months after it acquired the business in a £52m deal from Apax Partners.
The Mike Ashley-controlled retail empire said the fashion business had “consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses”.
It appointed administrators at Teneo to handle the process, which has since seen 273 staff members across buying, communications, analytics and marketing made redundant.
Former Matches boss Nick Beighton branded the company’s administration as “unnecessary”, claiming there was still a chance to turnaround the luxury ecommerce platform before Frasers placed it into administration.
Muji
Japanese retailer Muji filed for administration at the end of March as part of a wider reorganisation from its parent company.
The retailer’s UK stores – which include six in London and one in Birmingham – were retained in a pre-pack administration with the firm’s European holding company.
A spokesperson for the business said that “Muji will receive significant investment from its main shareholder and has plans for new stores and an improved e-commerce offer in Europe” following the restructuring.
Muji told TheBusinessDesk.com: “This is part of a planned strategic restructuring of the business and Muji’s management expect to conclude a deal shortly.
“For Muji’s colleagues and customers in Europe it is business as usual – all stores and ecommerce will continue to operate as before, and all new and outstanding orders will be fulfilled.”
Farfetch
Farfetch was sold to South Korean ecommerce giant Coupang at the start of February through a pre-pack administration deal.
The sale included a £394.7m bridge loan to help the ecommerce player avoid bankruptcy while the deal was finalised. The luxury etailer was able to explore other potential suitors for all or part of the business while details of the transaction were agreed.
Warnings signs flashed when the New York-listed company cancelled its quarterly earnings report in December and said it “expects to provide a market update in due course”.
It then began discussions with several parties, including Apollo and shareholder Richemont, about securing new financing.
Since its sale to Coupang, Farfetch founder José Neves has stepped down from the business and between 25% and 30% of its workforce is said to have been made redundant as the new owner works to “streamline the business”.
The Body Shop
The Body Shop emerged from administration at the start of September under new owner Aurea, a consortium led by the British cosmetics tycoon Mike Jatania.
The vegan beauty chain, which had more than 200 stores nationwide, collapsed in February just weeks after private equity giant Aurelius acquired the chain from Brazillian beauty group Natura & Co.
Administrators at FRP put the retailer up for sale after it concluded that an alternative restructuring under Aurelius, which continued to fund the business through the process, was not viable.
FRP had explored a company voluntary arrangement (CVA) for The Body Shop following a shop closure and redundancy programme.
New owner Aurea relocated the retailer, which is being spearheaded by Molton Brown CEO Charles Denton, back to Brighton in what it said marks a “significant cultural reset” for the business.
Lloyds Pharmacy
Lloyds Pharmacy owner Aurelius placed the company into liquidation at the start of the year as it concluded its year-long divestment campaign.
The pharmacy – which was once the second biggest chain in the UK – had been quietly closing its stores and selling most of them to independent retailers and smaller chains during most of 2023.
The business shuttered all its 237 branches inside Sainsbury’s supermarkets in June 2023 in a move that is thought to have cost around 2,000 jobs.
LloydsPharmacy, which blamed a cut in government funding for its widening losses and store rationalistion programme, now operates as an online doctor service, clinical homecare and for patients in NHS hospitals, prisons, community health trusts and the private sector.
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