Cash crisis wind-up threat for Pickford's

Published on Thursday 14 February 2008 09:15

PICKFORDS, Britain's biggest and oldest furniture removals chain, could be wound up unless a buyer for the business – which has "significant" short-term cash obligations – is found.

The loss-making group, which employs around 1100 people and dates back to 1695, needs cash to pay staff and creditors as the business struggles amid the housing downturn.

News of the problems at Pickfords comes just days after US parent group Sirva Inc filed for bankruptcy protection after the sub-prime housing crisis hurt its business.

Pickfords lost around 1 million last year and is expected to lose around 1.5m this year. It required a 350,000 cash injection last month to pay staff.

In a document filed to US regulators, the firm said: "If a solution is not found to the short-term funding requirement, the directors of Sirva UK Ltd must consider filing for an appropriate insolvency procedure."

Sirva Inc said it was in discussion with an unnamed company over the sale of the group's assets in return for "taking on certain liabilities".

If no solution can be found, the company said "it may be necessary for there to be a sale of Sirva UK Ltd".