43 jobs cut as Lombok collapses into administration

5719
43 jobs cut as Lombok collapses into administration
(Image: Google Maps)
// Quantuma appointed as administrators to Lombok
// All 43 members of Lombok’s staff have been made redundant
// Lombok has been through two pre-pack administrations previously: one in 2009 and another in 2011

Low consumer confidence and the recent coronavirus pandemic has pused furniture retailer Lombok into administration, resulting in the redundancies of all 43 members of staff.

Brian Burke and Sean Bucknall of business advisory firm Quantuma were appointed as joint administrators for Angora Retail Limited, which trades as Lombok, on Friday.

Founded in 1998, the retailer is a multichannel homeware brand selling handcrafted furniture, lighting and accessories via its own website and a flagship store in central London.

It is known for its Eastern/colonial-inspired dark teak furniture made from reclaimed wood, with products sourced from the Far East, India and Vietnam.

Lombok entered administration following a period of difficult trading resulting from low consumer spending and confidence in the lead up to 2020.

Its position has not improved and the detrimental impact on the retail sector as a direct result of the current coronavirus crisis subsequently pushed it into administration.

All 43 members of staff have been made redundant.

Lombok has been through two pre-pack administrations previously – one in 2009 when Privet Capital bought the group and the second in 2011 when it was bought by Lombok’s private owner.

Prior to appointment, Quantuma conducted an accelerated marketing process, but it was unable to conclude a sale.

Discussions remain ongoing with a view to selling the brand and intellectual property rights, and the administrators said it would continue welcome interest from any parties.

“Angora Retail had, in line with many retail businesses, struggled as a result of the economic climate, changing consumer behaviour and spending habits,” Burke said.

“We also can’t ignore the impact that the coronavirus pandemic has had in this instance.

“The pressure on non-essential retailers is at it an all-time high, making it somewhat impossible for a company in this position to recover.

“Despite our efforts, we have been unable to conclude a sale up to now.

“However, we are still actively looking to sell the brand and its IPR and would urge any interested parties to get in touch.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here