32 jobs lost
Remnant Kings falls victim to changing consumer habits
Remnant Kings: ‘nil income’
Fabric supplier Remnant Kings, a prominent name in Scottish haberdashery for 74 years, has collapsed with the loss of 32 jobs.
Established in 1946, the company operated a chain of stores across central Scotland together with an online service selling fabric for curtains, blinds, soft furnishings, dressmaking and quilting to the general public, small business and local authorities.
It operated from three leased premises, located in Glasgow, Edinburgh and Hamilton.
Historically profitable, the company has suffered from declining turnover and trading difficulties in recent years caused by changing consumer habits and the recent coronavirus outbreak.
The directors sought to address the financial issues via the closure of loss making stores as part of a business restructure last autumn.
As part of this process, additional working capital support was provided by other associated companies under the control of the directors.
Despite these actions, trading losses and cash flow pressures continued to increase and the COVID-19 outbreak reduced customer footfall over recent weeks to the extent that the directors decided the company could not continue to trade.
They closed the stores over the weekend of 21 and 22 March and placed the company into administration.
Administrators from KPMG were forced to make all employees immediately redundant.
The board placed the company into administration with extremely heavy hearts– Remnant Kings
Blair Nimmo, joint administrator, said: “Unfortunately, Remnant Kings Central Limited was unable to continue trading in light of significant liabilities and cashflow difficulties, having been affected by changing consumer habits, exacerbated by the COVID-19 outbreak.
“This has led to the redundancies which have been announced. We will be working closely with Skills Development Scotland via their PACE team to support all affected employees during this difficult time.”
A spokesperson for Remnant Kings added the board had placed the company into administration “with extremely heavy hearts”.
“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.”