Coronavirus: Virus crisis pushes fabric firm into administration

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Remnant KingsImage source, Google

Thirty-two people have been made redundant after administrators were called in to Glasgow-based fabric and soft-furnishing firm Remnant Kings.

Administrators said the company suffered a drop in trade in recent years but the effects of the coronavirus outbreak sealed its fate.

A drop in footfall since early March led directors to conclude the company could not continue to trade.

The firm said it could not pay "critical" bills on nil sales income.

Remnant Kings was established in 1946 and operated a chain of stores across central Scotland as well as an online service.

Its directors closed the store at the weekend and placed the company in administration.

Financial strain

Blair Nimmo, the joint administrator, said they had "no option" but to make the employees redundant as the firm had ceased trading.

He said the company was affected by changing customer habits which were exacerbated by the Covid-19 crisis.

The firm was unable to continue trading in light of "significant liabilities and cashflow issues", he added.

A spokesperson for Remnant Kings Central Ltd said the firm had been placed into administration with an "extremely heavy heart".

"Despite recent government measures to reduce the financial strain on businesses in face of the Covid-19 pandemic, the company is not in a position to meet ongoing critical payments in the face of nil sales income," they added.

"Remnant Kings was started in Glasgow in 1946 and has been supported during this time by many dedicated and long serving employees and exceptionally loyal customers.

"We understand this is going to be a very challenging time for many people and we sincerely regret any negative impact this announcement will bring."