News

6/7/11: GA Europe acquires TJ Hughes’ debt

GA Europe, the leading restructuring specialist, has acquired the debt of TJ Hughes for an undisclosed sum. The 57 strong Liverpool based department store chain went into administration last week.

GA Europe will now work closely with the administrators Ernst & Young, by trading the stores and assisting the administrator to examine the options available to TJ Hughes.  Joint administrators Tom Jack and Simon Allport of Ernst & Young have previously stated their hopes that a buyer or buyers can be found for at least a part of the business. Those efforts are continuing.  However, in view of the group’s trading history, it is probable that a significant number of the stores will have to close.

TJ Hughes was the subject of a management buy-out in 2003, but has struggled for some time against an increasingly difficult market background. The business was sold in March this year to turnaround specialists Endless. Despite the injection by Endless of significant additional funds for working capital, TJ Hughes has continued to suffer and its financial difficulties reached a point where it could no longer continue to trade solvently.

TJ Hughes has 4000 employees, of whom over 3500 work in the stores.

ENDS

For further information please contact:

Gavin George       GA Europe    020 3178 4760
European Managing Director