By HELEN COMPSON

Last updated at 10:59, Friday, 14 May 2010

THE future of Robb’s began to look particularly bleak on Tuesday afternoon when the administrators set the clock ticking.

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Insolvency specialists MCR announced that if a buyer wasn’t found for the ailing department store by 5.30pm last night, banners advertising a closing down sale would go up this morning.

MCR partner Sarah Bell made it clear that Robb’s was one of nine Vergo Retail stores in such a parlous state that they wouldn’t be able to stay afloat for much longer – they were all expected to close within the next four weeks.

“Following a financial review of the business it was apparent it could not continue to trade in the short term without implementing immediate cost saving measures,” she said.

“Regrettably, this means that 335 positions (across the nine stores) have been made redundant with effect from today.”

However, she added a purchaser for any of the stores would not be ruled out until they finally stopped trading.

Like many retailers, Vergo had been experiencing a difficult trading environment during the economic downturn and it had been making a loss during 2010.

She said: “It has made efforts following the recently announced closure of the Lewis’s store in Liverpool to seek new finance to restructure the business, but has been unsuccessful in finding a going concern solution.”

Joplings, Robb’s sister store in Sunderland, is one of the other eight stores earmarked for early closure, alongside stores in Whitam, Clacton-on-Sea, Stowmarket, Plymouth, Colchester, Norwich and Dovercourt.

Lewis’s, the chain’s flagship store in Liverpool, was already in the throes of closing – due to the redevelopment of its host building – before the latest twist in the tale.

The remaining 10 stores in the group will continue to trade as usual in the short term in the hope they can be sold as going concerns.

Newcastle-based retail analyst Graham Soult said there were few candidates – particularly in the current economic climate – wanting to buy department stores nowadays.

“Independent department stores are on the wane,” he said. “But there are a couple of candidates who might be interested in a store like Robb’s.

“There is former Jaegar man Howard Tillman, who owns the Allder’s chain based in Croydon – he was mentioned when Robb’s went into administration in 2007.

“And there is Beale’s, which has its headquarters in Bournemouth.

“It has a store in Kendal in Cumbria and I have always felt that if Beale’s was in an acquisitive mood, Robb’s would be a good fit.”

Beale’s focused on small towns where it could be an anchor on the high street and made a point of targeting the grey pound.

The fact Vergo did not own the Robb’s building could put off prospective buyers, though, particularly if owners Buccleuch Group went ahead with its long-planned redevelopment of the site.

There would be little in the way of long-term security for prospective new tenants, unless the right level of reassurance was given by Buccleuch.

“Having said all that, Robb’s could be a really successful business, because it’s in the heart of Hexham and it has a very loyal trade,” said Mr Soult.

“It’s just that there has been little or no investment in recent years – it has been limping along since it was sold by Merchant Retail.”

First published at 09:48, Friday, 14 May 2010
Published by http://www.hexhamcourant.co.uk

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