Supply chain struggles see Padiham pair enter administration
A pair of Padiham businesses have entered into administration at the cost of 12 jobs after international shipping delays exacerbated a precarious financial position.
Big Home Shop Ltd sells garden furniture, outdoor equipment and other general furniture items via online marketplaces. It had experienced financial challenges, with the pressure increasing due to a significant stock shortage during a peak sales period, resulting in a large funding requirement that the company was unable to meet.
Physioroom Ltd sells home exercise, recovery and injury prevention equipment via its dedicated website. As the company is reliant on Big Home Shop for a number of services which it was no longer able to provide, the loss of these services, combined with recent trading losses, meant that Physioroom was also unable to fund ongoing trade.
Rick Harrison and Howard Smith from Interpath Advisory have been appointed joint administrators. They will continue to trade both businesses while all options are assessed, and have retained the majority of the 35 staff, though 12 have been made redundant.
Rick Harrison, managing director at Interpath Advisory and joint administrator, said: “Big Home Shop is a seasonal business. Unfortunately, the well-publicised international shipping delays seen across the globe in 2021 had a significant impact on the company’s stock, which led to lower than usual trading through its peak season. We will continue to trade the business while all options are assessed.”
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