Courts re-opening but future in doubt

COURTS: Trading over Christmas
COURTS: Trading over Christmas

COURTS furnishing stores are to re-open on Thursday - but they may not stay open for more than a few weeks.

Administrators of the collapsed group have signed a deal with the SB Capital retail turnaround group to trade the stores over the Christmas period.

But it seems that most of the 88 stores will close in February and the familiar Courts’ name - founded in Canterbury in 1854 - and the advertising slogan “See you in Courts” will disappear.

SB Capital may keep 14 stores, but the future of the others, including those in Maidstone, Gravesend, Dover, Canterbury, Ramsgate, and Ashford, is uncertain. They are likely to be closed in a phased rundown over the period to February 20, 2005.

Hundreds of staff face losing their jobs in Kent out of a total retail workforce of 1,850.

But the decision should be good news for customers waiting to collect their furniture. Those who have paid in full will receive their original order where possible.

Mick McLoughlin, joint administrator and head of KPMG Corporate Recovery, said that if it was not possible they would have the opportunity to choose an alternative item of the same value.

He said: “For those customers who have paid by deposit they will be offered an alternative item less 10 per cent discount, whilst others will have a claim against their credit card companies.”

He added that the deal with SB Capital, an investor in Furnitureland and Land of Leather, was the best that could be achieved.

"Unfortunately we did not receive any deliverable offers for the business as a going concern.

“However, the offer with SB Capital hopefully secures employment for staff in the 14 stores and will assist to ensure customer orders are fulfilled.

“We have received considerable support from employees during the administration, in extremely difficult circumstances, and thank them for their efforts."

Administrators kept the stores closed because they feared further violence by angry customers. Several staff have been attacked and a security guard suffered a broken arm after being thrown through a window.

Courts collapsed with debts of £280m. But its overseas operations are not affected and are trading normally.

Courts was founded in Canterbury in 1854. The Cohen family, which bought the group in 1945 and still owns a 44 per cent stake, has lost more than £75m.

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