Sunny

Sunny

max temp: 12°C

min temp: 6°C

ESTD 1874 Search

Stowmarket/ Diss: 15 staff to be re-employed following purchase of Godfrey DIY stores

17:13 05 February 2013

The Diss and Stowmarket Godfrey DIY stores are to continue to trade after being purchased out of liquidation

The Diss and Stowmarket Godfrey DIY stores are to continue to trade after being purchased out of liquidation

Archant

RETAIL chief Barry Godfrey has vowed to re-employ 15 staff and restock the Godfrey’s DIY businesses in Diss and Stowmarket after buying the stores out of liquidation.

shares

Mr Godfrey used his company Harvey House Retail to purchase the two businesses – and their assets– as going concerns during a creditors meeting with insolvency specialists McTear Williams & Wood on January 30.

The liquidation buy-out will now spark a “massive clearance liquidation sale” at the two stores– although question marks still remain over the future of the Norwich store on Riverside Road.

Andrew McTear, insolvency practitioner, said dozens of parties had been interested in acquiring the two businesses, and that they had come to within hours of devaluing the stores because the sale had to be completed before a new property rental period started on February 1.

The announcement comes just weeks after Mr Godfrey had instructed McTear, Williams and Wood to begin the process of winding down the company, which had seen its sales and cashflow dwindling due to the knock-on effect of the housing crisis in 2008, poor weather, and increased competition from other big name DIY retailers.

But despite the Norwich business struggling to remain a viable, both the Diss and Stowmarket stores had been operating profitably. In a statement, Mr Godfrey said: “We are pleased to have been successful in buying the Diss and Stowmarket assets from the liquidator and to be able to re-employ about 15 people.

“We are now working hard to restock the Diss and Stowmarket stores and, to make way for this, we will be running a massive clearance liquidation sale over the next few weeks.”

However, he added: “The future of the Norwich store remains uncertain.”

Godfrey, which generated a £5million turnover last year, warned in December that it planned to downsize its business, with the possibility of losing up to 20 out of a total of 26 jobs at its Norwich store on Riverside Road, and up to half of the staff at stores in Diss and Stowmarket, where it had employed 14 and 11 people respectively.

Mr McTear said: “We received keen interest from half a dozen parties in the Diss and Stowmarket stores and set a deadline for offers on the day of the liquidation.

“To preserve value in the stores we had to conclude the sale before a new property rental period started on February 1 this year and we achieved this with only eight hours to spare.

“Our job now is to agree creditors’ claims and pay a dividend to creditors. In fact since being appointed we have worked around the clock to pay as much of the 50 employees claims as possible and managed to press the button transferring the funds on day two of the liquidation.

“This is the first time in my career of over 25 years that we have been able to pay employee preferential claims so quickly but from the start we were determined to do everything we could to get some money to the employees as the company’s bank account had been frozen and it was unable to release the January wages.”

shares

0 comments

Stage 5 of the Womens Tour passes through Onehouse on their way to Bury St Edmunds last year

Schoolchildren will also be involved in an evening of activities in Bury St Edmunds ahead of the start of a major women’s cycling event.

Paul Rous, of Bruisyard Hall, has launched a tech startup venture with Mark Pearson

A Suffolk entrepreneur has teamed up with a top technology investor, who made millions from a website he created with just £300, to help finance new ideas.

Cloud telecoms company X-on has launched Cuube, a new online communications services platform.

Cloud telecoms company X-on, based at the Framlingham Technology Centre, has launched Cuube, a new online communications services platform.

Jeremy Goulding, front, left, chief executive of Wheatley, is congratulated by Innovatioin Martlesham chair Ian Buxton on winning the first Innovationi Martlesham competition. Also pictured, from left, are Paul O'Brien of BT, Jane Bromley of Wheatley, Mike Ward of Wheatley and Mohamed Abdel-Maguid from University Campus Suffolk.

Software company Wheatley has been named winner of a new competition staged by Innovation Martlesham, the cluster of hi-tech companies based at BT’s Adastral Park research site, near Ipswich.

Suffolk cider and vinegar maker Aspall was named Business of the Year at last year's EADT Business Awards.  From left, Tom McGarry of EDF Energy, Barry Chevallier Guild of Aspall and Sarah Howard,  of SuffolkChamber.  	
Picture: Lucy Taylor

There is now less than a week to go to enter the 2015 East Anglian Daily Times Business Awards.

Total unemployment in the UK has reached a near seven year low, official figures showed today.
Photo: Philip Toscano/PA Wire

Unemployment in the UK has continued to fall and a record 31million people are in now work, according to the final labour market figures before the General Election.

The Nestle Purina plant in Sudbury.

KitKat, Nescafe and Shredded Wheat maker Nestlé said today that first quarter sales had been boosted by an earlier Easter, but with growth dented by currency changes after the Swiss central bank’s shock decision to lift a cap on the franc.

The B&Q store on the North Quay Retail Park in Lowestoft which is closing in January 2016. Picture: James Bass

DIY chain B&Q has announced its Lowestoft store will close at the start of next year, with reportedly 40 jobs being lost.

The team at Ipswich-based software company IJYI.

A start-up software business in Suffolk has secured a place on a Government panel allowing it to bid for the delivery of cloud technology services across the public sector.

Most read

Most commented

Topic pages