No Proffitts pre-pack, town rallies around troubled store

28.07.2010

There will be no pre-pack administration at independent furniture retailer Proffitts of Bolton, says a spokesman for recovery outfit RSM Tenon, and any change in the ownership structure is likely to be a straight sale.

RSM Tenon was appointed administrator earlier this month and this week issued press statements saying it would continue to trade the business while a suitor was sought.

David Proffitt is the principal shareholder of the company in administration (Proffitts of Great Lever Ltd) and its sole subsidiary (Proffitts of Bolton Ltd), and he remains with the business, according to a Proffitts spokesman.

At the time of their last filed accounts, (end July 2009) Proffitts of Great Lever had net assets of £0.255m while Proffitts of Bolton had net liabilities of £0.244m (end January 2010).

The administration has been reported widely in the regional press, with the Bolton News quoting a local councillor describing Proffitts as an integral part of the town, going on to add that people should be urged to go and shop there and support the business.

A spokesman for RSM told the Furnishing Report that if they managed to find a buyer, it ought to be a straight sale.