The family-run enterprise had been buying and selling since 1980 and has now closed 11 of its shops.
The corporate shut 11 shops (Picture: Getty)
An extended-established household enterprise has collapsed into administration after greater than 45 years. The unbiased UK lighting specialist had been buying and selling since 1980 and operated shops throughout Scotland and England. It has shut 11 shops following the insolvency course of.
Round 70 jobs have been misplaced whereas a small variety of websites reportedly proceed to commerce on a decreased foundation. Past lighting, Pagazzi Lighting had expanded its providing in recent times to incorporate a variety of homeware and furnishings merchandise.
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70 employees have been made redundant (Picture: Getty)
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The retailer offered house décor objects reminiscent of mirrors, rugs, throws, candles and wall artwork, alongside bigger furnishings items together with eating units, espresso tables and different occasional tables because it sought to broaden its enchantment to customers.
Model new paperwork have now revealed that “there will likely be inadequate funds out there” for unsecured collectors owed £3.4 million by the corporate, The Herald Scotland stories.
Directors BTG confirmed that the enterprise has restricted funds remaining, with current asset gross sales elevating solely about £125,000.
They stated in a newly revealed report: “Primarily based upon realisations up to now and estimated future realisations there will likely be inadequate funds out there to allow a dividend to be paid to the unsecured collectors.”
The directors stated the corporate’s concessions division accounted for an estimated £1.675 million in unsecured creditor claims, whereas an additional £1.795 million was linked to its providers arm, though the ultimate figures might nonetheless change because the administration course of continues.
Rising prices throughout the retail sector, mixed with shifting client habits in the direction of on-line procuring, have considerably impacted efficiency. The directors additionally pointed to broader monetary pressures, together with increased wages, elevated Nationwide Insurance coverage contributions, elevated enterprise charges, and rising power and logistics bills.
The enterprise reported losses of round £500,000 between April 2025 and February this 12 months.
The report acknowledged: “In recent times, the corporate’s buying and selling efficiency has been impacted by the identical challenges affecting many UK retailers.”
It added: “Particularly, the retail sector has been affected by a sequence of government-imposed and regulatory price will increase, together with rises within the Nationwide Residing Wage, will increase in employer Nationwide Insurance coverage contributions and continued strain from enterprise charges and occupancy prices.
“These have been accompanied by increased power, logistics, and provide chain prices.
“Collectively, these components have materially elevated the mounted price base of store-based retail companies at a time when footfall and demand have turn out to be extra risky.
“While the Pagazzi model has continued to generate gross sales and retain buyer recognition, the legacy store-based working mannequin and stuck price construction has turn out to be more and more misaligned with the realities of the market.”
Thomas McKay, managing accomplice of BTG, beforehand stated: “The retail sector has seen some very robust months of late in Scotland and this has additionally affected the lighting sector, primarily attributable to growing competitors and excessive buying and selling prices.
“Lowered margins, slower client spending and rising working prices are creating challenges for a lot of excessive road retailers, and sadly, these are the principle components that noticed the Pagazzi shops and concessions not in a position to commerce.
“The 11 affected shops closed on Wednesday, after BTG consulted with employees in regards to the anticipated closure.
“Sadly, there have been 70 redundancies arising from the unavoidable closure of the stores that have been not in a position to commerce.
“We’re working carefully with these people affected to help them with entry to their entitlements along with Partnership Motion for Persevering with Employment (PACE) and the Redundancy Funds Service, as we offer these employees members with the help and recommendation they want.”
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