A Scottish family-owned retailer has appointed administrators with 70 jobs lost.
The Thornliebank-headquartered firm that was set up 45 years ago has closed 11 stores.
George Lafferty of BTG (formerly Begbies Traynor) was appointed as administrator of Pagazzi Lighting Services and Pagazzi Lighting Concessions Ltd, after it experienced “ongoing cash flow issues after a period of sustained poor trading”.
The company was a long-established family business that was restructured two years ago, but has “suffered from the pressures of increased operating costs that have affected many retail businesses in recent times”, the administrator said.
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After efforts to secure a buyer for the business and its assets, Pagazzi Lighting (Web) Limited, the online retail division of Pagazzi lighting, has acquired the business and assets and will operate from a handful of key retail outlets in Scotland.
Thomas McKay, managing partner of BTG in Scotland and Northern Ireland, who managed the restructuring activity, said: "The retail sector has seen some very tough months of late in Scotland and this has also affected the lighting sector, mainly due to increasing competition and high trading costs.
"Reduced margins, slower consumer spending and rising operating costs are creating challenges for many high street retailers, and unfortunately these are the main factors that saw the Pagazzi stores and concessions no longer able to trade.
"The 11 affected stores closed on February 25, after BTG consulted with staff about the anticipated closure.
"Sadly, there have been 70 redundancies arising from the unavoidable closure of the retail outlets that were no longer able to trade.
"We are working closely with these individuals affected to assist them with access to their entitlements in conjunction with Partnership Action for Continuing Employment and the Redundancy Payments Service, as we provide these staff members with the support and advice they need."
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