KPMG appointed administrators of Remnant Kings
KPMG has been appointed as administrators of Glasgow-based fabric and soft-furnishing company Remnant Kings Central Limited.
Blair Nimmo and Alistair McAlinden were appointed as joint administrators of the firm yesterday.
The move into administration has made all 32 members of staff redundant.
With the cessation of trading prior to the administration appointment, the administrators had no option but to make all employees immediately redundant.
Originally established in 1946, Remnant Kings Central was incorporated in 1987 and operated a chain of stores across central Scotland together with an online service selling fabric for curtains, blinds, soft furnishings, dressmaking and quilting to the general public, small business and local authorities.
As at the date of appointment, the company operated from three leased premises, located in Glasgow, Edinburgh and Hamilton.
Historically profitable, the company has suffered from declining turnover and trading difficulties in recent years caused by changing consumer habits.
The directors sought to address the financial issues via the closure of loss-making stores as part of a business restructure during autumn of 2019. As part of this process, additional working capital support was provided by other associated companies under the control of the directors.
Despite these actions, trading losses and cash flow pressures continued to increase and, since early March 2020, the COVID-19 outbreak reduced customer footfall over recent weeks to the extent that the directors ultimately concluded the company could not continue to trade.
The directors closed the stores over the weekend of 21 and 22 March 2020, and placed the company into administration.
At the time of the appointment, the company employed 32 people. With cessation of trading prior to the administration appointment, the Administrators had no option but to make all employees immediately redundant.
Blair Nimmo, joint administrator and KPMG’s UK head of restructuring, said: “Unfortunately, Remnant Kings Central Limited was unable to continue trading in light of significant liabilities and cashflow difficulties, having been affected by changing consumer habits, exacerbated by the COVID-19 outbreak.
“This has led to the redundancies which have been announced. We will be working closely with Skills Development Scotland via their PACE team to support all affected employees during this difficult time.”
A spokesperson for Remnant Kings Central Limited, added: “It is with extremely heavy hearts that the directors of Remnant Kings Central Ltd announce that the company was placed into administration on 24 March 2020. Despite recent government measures to reduce the financial strain on businesses in face of the COVID-19 pandemic, the company is not in a position to meet ongoing critical payments in the face of nil sales income.
“Remnant Kings was started in Glasgow in 1946 and has been supported during this time by many dedicated and long serving employees and exceptionally loyal customers. We understand this is going to be a very challenging time for many people and we sincerely regret any negative impact this announcement will bring.”
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