To save money in the recession and help the business during this period of slower sales, Fonehouse Holdings Limited was placed into administration on Monday 22 June with business rescue and insolvency firm, Leonard Curtis.
However, the move is purely a cost saving exercise and not a sign of a struggling business, stated Bailey. “We are not in administration as a company,” Bailey stated. “We are trading and in business and doing quite well, even though the market is tough out there at the moment.”
He explained further: “We have placed one company that owns some leases into administration. We are now negotiating with the landlords to get those leases down in price. We are basically tidying everything up in order to survive in today’s market, by dropping one business in order to renegotiate rent. Any business with big high street leases, from Marks & Spencer, down, is finding retail quiet. We are taking this opportunity to knock out any stores with exorbitant rent.”
The businesses affected by the administration of Fonehouse Holdings will be reopened pending satisfactory re-pricing of rental agreements, Bailey confirmed.