More than 300 employees at homewares retailer Textiles Direct are facing the possibility of redundancy after the Oldham-based business was placed into administration this week.
The retailer expressed the intention to appoint administrators last month after seeing sales slide by 20% over the last year. Insolvency specialist firm Lucas Johnson is looking after the 52-store chain, and has said the business will continue to trade while a buyer is sought.
Despite this, five stores have been earmarked for immediate closure, including one in Belle Vale, Liverpool, with staff being made redundant. It has been reported that a number of redundancies are planned for the firm's head office.
Kevin Lucas, of Lucas Johnson, said the administration was largely down to the "unprecedented decline in turnover" over the past 12 months.
He added that the firm are hopeful a suitable buyer will be found, but admitted that if this does not happen, Textiles Direct will face closure.
The retailer's website is operated by a separate company so remains unaffected by the administration.
Textiles Direct was founded in Liverpool more than 25 years ago. In its heyday, it had 75 stores and employed more than 400 people. In 2010 the firm was forced to restructure, closing more than 20 of its stores and cutting staff numbers to around 300.