MONTROSE High Street has been dealt a blow as Acorn Pets (UK) Ltd., has entered administration for the second time in less than two years.
The business was placed in the hands of joint administrators David Menzies and Pamela Coyne of Begbies Traynor last Wednesday after a sustained period of poor trading.
The administrators have closed the Montrose store alongside another 15 immediately resulting in the loss of 122 full and part-time jobs with the aim of rescuing the remaining six stores and saving 41 jobs.
Joint administrator David Menzies 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.”
The directors of the firm took ownership of Acorn Pets (UK) after the business was bought by its management from the previous administrators Tenon in September 2009.
Mr Menzies continued: “The business has struggled since the MBO and unfortunately, with increasing losses and no cash available to pay wages, we were unable to save the stores that were losing money.
“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.”