A Glasgow furniture business has fallen into administration, with "downward price point pressure from online retailers and declining in-store footfall" flagged.
Blair Nimmo and Alistair McAlinden, of Interpath Advisory, were appointed joint administrators to Morale Home Furnishings UK Limited, owned by businessman Khalid Ali and his family, on Wednesday.
Based in Glasgow, Morale is a retailer of furniture and homewares, as well as garden furniture and accessories.
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The administrators said: “Morale had been trading successfully since 2006, under the ownership of the well-known and respected businessman Khalid Ali and his family, and had navigated the challenges of Covid-19. However, the company has faced significant headwinds over recent months with downward price point pressure from online retailers and declining in-store footfall.
“The directors have worked tirelessly to explore alternative solutions and have injected significant funding to support the business but, ultimately, have taken the difficult decision to seek the appointment of administrators.”
Following their appointment, the joint administrators have announced they will continue to trade the business “for a period”, and have started a closing-down sale at the Morale store at Hillington Industrial Estate in Glasgow.
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The administrators said: “The sale will initially see discounts of at least 30% off RRP (recommended retail price) on all stock, and up to 60% off RRP on selected lines on display furniture straight from the showroom.
“Stock available includes a wide range of high-quality living, dining and bedroom furniture, garden furniture and accessories, as well as lighting and soft furnishings.”
Mr McAlinden, head of Interpath Advisory in Scotland, said: “As consumers continue to tighten their belts as a result of the cost-of-living crisis, retailers of big-ticket items and similar considered purchases continue to come under significant pressure. Unfortunately, in the case of Morale, the company has been impacted by customers moving to lower-priced alternatives, including those retailers which predominantly sell online.”
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The company has around six employees, the administrators said.
They added that all staff would be retained “immediately following the appointment of the joint administrators and while they continue to trade the business”.
Mr McAlinden said: “Our intention is to trade the business for a short period while we seek to sell all remaining stock, so would encourage customers to visit the store over the coming days, where Morale’s team of dedicated employees will be available to assist.”
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