28 April 2011

Acorn Pets (UK) Ltd Goes Bust

The pet store company Acorn Pets (UK) Ltd has entered administration for the second time in less than two years.

16 of the firm's stores will close resulting in the loss of 122 full and part-time jobs.

Six stores employing 41 people will continue to trade while a buyer is sought.

Cash Flow Problems

It is thought that the cash flow problems resulted from supermarket competition.

Joint administrator David Menzies, from Begbies Traynor, said: "The business has struggled to recover from the administration in 2009 and the resulting cash constraints, and the management team have been unable to make the business work in the face of increasing competition, particularly from supermarkets."

He added, "We are already seeking a buyer for the scaled down business and we hope that without the drain on resources of the loss-making stores we will be able to secure a long-term future for the six remaining outlets."

The six stores that remain open are based in Ayr, Cowdenbeath, Dunfermline, Inverness, Kilmarnock, and Glasgow.