A Scottish lighting retailer has entered administration after nearly 45 years in business, leading to the closure of 11 stores and the loss of 70 jobs.
The Thornliebank-based company, Pagazzi Lighting, known for selling decorative lighting, mirrors and home accessories across Scotland and northern England, appointed George Lafferty of BTG as administrator following ongoing cashflow problems.
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Administrators confirmed the affected stores, including locations at Braehead Shopping Centre and Uddingston, shut their doors after consultations with employees.
Thomas McKay, managing partner at BTG, said the business had been hit by a "sustained period of poor trading", with rising operating costs, increased competition and slower consumer spending placing pressure on the retailer.
Despite undergoing a restructuring two years ago, the company was unable to withstand the continued financial strain.
However, the Pagazzi brand will continue in a reduced form after its online division, Pagazzi Lighting (Web) Limited, acquired the business and its assets. The move will allow the brand to remain active online and through a limited number of key retail outlets in Scotland.
The collapse highlights the ongoing challenges facing high street retailers amid rising costs and weakening consumer demand.
Source: www.thesun.co.uk
