Administrators have been brought in at a Leicester business which makes interiors for some of the world’s top retailers.
Clements Retail, in Hamilton on the outskirts of Leicester, has appointed Midlands-based business advisory and accountancy firm PKF Smith Cooper to lead the administration process. Its financial problems have been blamed on debts caused by a big fall in business during lockdown.
Over the years the business has designed, built and installed retail interiors for clients including Christian Louboutin, Lanvin, Alexander McQueen and Michael Kors.
Joint administrators Dean Nelson and Nick Lee, from PKF Smith Cooper, said as well as building shop interiors the business provided marketing, brand and logistical support to global manufacturers.
They said Clements experienced significant financial losses in 2020 and 2021 as a result of reduced demand, project delays and bad debt from customers caused by the pandemic.
They said: “Ultimately Clements was unable to recover and PKF Smith Cooper was appointed to deal with the business and its assets.”
Accounts to the end of June 2021 showed the business brought in a new chief executive to help execute a turnaround programme, which included the closure and sale of a production facility and stopping its manufacturing operations in favour of doing store fit-outs and branding support. The business also cut staff numbers, taking the number that year down to 54 from 69 in 2020.
The accounts said the business turned over just over £17 million in the 12 month period and made pre-tax losses of more than £2.5 million which it had hoped to overcome.
Dean Nelson, a business recovery and insolvency partner at PKF Smith Cooper, said: “Creditors have been provided with the relevant information regarding the administration process, to enable them to partake in proceedings.
“We are in the process of dealing with all enquiries and working to assist the affected employees with processing their claims for statutory entitlements at this difficult time.