Julian Charles rescued from brink of collapse after 'suffering economic headwinds'

Luxury bedding and homewares company Julian Charles has been saved from administration following challenges with declining sales and rising taxes.

Headquartered in Manchester, the firm's business and assets have now been acquired by Great Bedding Co Ltd in a transaction that ensures the continuation of 230 jobs out of its 251-strong workforce, securing over 25 trading sites in addition to various concession locations, as reported by City AM.

Marco Piacquadio and Alan Coleman from FTS Recovery were appointed as administrators to facilitate the sale.

Official records at Companies House show that the entity behind Julian Charles was in arrears of nearly £3.5 million upon entering administration.

Established in Lancashire in 1947, Julian Charles boasts a network of 70 outlets within the UK, which includes 41 stand-alone shops alongside concessions such as those within Boundary Mill and assorted garden centres.

Prior to this development, SKG Capital had been the proprietor of the brand since June 2020.

City AM reported earlier in January 2024 that Julian Charles had registered a pre-tax loss of £978,580 for the annual period ending on 30 April 2023, which was a noticeable decline from a previously reported profit of £288,225.

Despite the setbacks, the business saw a marginal turnover increase from £17.3 million to £17.6 million during the same fiscal year.

At the conclusion of that financial year, the brand maintained operations across 73 trading sites, encompassing both stores and concessions.

In a statement addressing the rescue, FTS Recovery mentioned: "In recent years the company has suffered a number of economic headwinds which have resulted in cash-flow difficulties and left it unable to meet all its current liabilities.

"Besides a significant drop in turnover, the company is acutely aware of the impact of the escalating tax burden, particularly those announced in last October's budget, which directly affects its bottom line due to rising employment costs."

Julian Charles faced a 'devastating combination of rising costs and declining consumer confidence.'

Marco Piacquadio, director at FTS Recovery, commented: "As is typical when parachuted in, we were focused on seeking to rescue as many elements of the business as possible, always keeping the position of the employees, consumers and other creditors and stakeholders at the forefront of our minds."

"This was a relatively complex transaction with significant scale and the ability to move quickly was key."

"I am grateful to have achieved a really pleasing result given the circumstances and we wish the new owners and remaining staff and stakeholders the very best going forward."

"I would also like to extend my gratitude to the wider professional advisers who assisted with the transaction."

"Our legal team was spearheaded by Hayley Phelps of HCR Law, with substantial additional input required from HCR's property team given the number of sites involved."

"Thanks also go to John Pye Auctioneers and Valuers, who conducted an extensive marketing process under the provisions of SIP 16, led by Gary Harper and his team."