05:58PM - Thu 11th August 2011
By Gemma Taylor -
Furniture retailer Lombok has confirmed that “administration is an option”, following a number of store closures last week.
The company, which has been trading for over ten years and is named after the idyllic Indonesian island, offers handmade furniture across the UK, but has found tough economic conditions difficult to manage.
Last week a number of stores closed, including shops in Brighton, Hampstead and Leamington Spa, as well as London locations Chiswick, Wimbledon and Chelsea’s Kings Road.
The company’s customer services department will continue to process outstanding orders in spite of the changes.
The announcement follows news that the homeware sector is suffering more than others, as consumer confidence weakens and affects big-ticket sales. The Business, Innovation and Skills government department published insolvency statistics last week for the second quarter of 2011, which showed a 2.7 per cent increase from Q1 and a 4.4 per cent rise year-on-year.
A number of high-profile names in the sector have entered administration in recent months, including Focus DIY and Habitat.
A Lombok spokesperson said today: “Lombok is exploring all options as part of its restructuring and fully intends the Lombok brand to continue trading with a focus on its successful online offering and key flagship stores.”
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