The joint administrators of a collapsed Glasgow furniture business say they will be contacting all customers who have prepaid for items.

And they have advised customers of Morale Home Furnishings UK Limited who have paid for items to “contact in the first instance”.

Blair Nimmo and Alistair McAlinden from Interpath Advisory were on Wednesday appointed as joint administrators of the company.

Based in Glasgow, Morale is a retailer of furniture and homewares, as well as garden furniture and accessories.

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Asked what would happen with customers who have paid deposits for furniture which has not yet been delivered or collected, a spokeswoman for Interpath Advisory said: “The joint administrators will be contacting all customers who have prepaid for items to discuss each case. Customers who have paid for items are advised to contact in the first instance.”

The administrators said on Thursday: “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.

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“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 announced they would continue to trade the business “for a period”, and they 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.”

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, 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.”

He added: “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.”