A POPULAR retail chain has been forced to close nearly all of its stores across the UK – leaving customers devastated.
Winfields has announced it is shutting a number of its branches after suffering financial losses and going into administration.
The popular brand has revealed it will be closing all of its seven UK stores bar one in Haslingden, Lancashire where it is headquartered.
The firm’s website says it is in administration, with joint administrators from Cowgills acting as agents of the company.
It will however continue to operate its business online.
Chester, Redditch, Leeds, Hull, Keswick and Swadlingcote in Derbyshire have all been forced to shut up shop after years serving the local community.
The Sun has contacted both Cowgills and Winfields for comment.
Founded in the 1970s, Winfields has been a “long-established company” in the area.
Despite its popularity among locals though, the small hiking brand has suffered financials losses which are believed to have driven the brand’s recent store closures.
Devastated locals jumped onto social media to express their sadness over the recent news, with one calling it her “favourite shop” and another saying, “gutted, loved looking at tents”.
One heartbroken resident called the shop closures an enormous “shame” whilst another reminisced about the time she would “drive miles just to get there”.
Reassuring locals, a store spokesperson said it would still be running the company online and a shop in Haslingden will remain open.
In a statement posted on Facebook, Winfields said: “Although some of our stores have closed, our website is running smoothly, and our Haslingden store remains open, ready to help you find all your outdoor gear need.
“We’re grateful for your continued support, and despite some recent rumours, the company is still running.”
Councillor Alyson Barnes, leader of Rossendale Council, also expressed her dismay over the announcement, showing concern for those facing inevitable job loss.
“It’s a great pity to hear this. “They have been a long-established company in the area – it is never good to hear about companies closing down and people losing their jobs.
“It’s an incredibly challenging environment at the moment, and small businesses, such as Winfields, probably feel it more keenly than some of those that have a bigger online presence.”
Meanwhile, Haslingden ward’s Councillor Marilyn Procter called the news “sad” and a “worry” for worker impacted by the closures.
What does going into administration mean?
The administrator has to leverage the company’s assets and business to repay creditors any outstanding debts.
Once a company enters administration, a “moratorium” is put in place which means no legal action can be taken against it.
Administrators write to your creditors and Companies House to say they’ve been appointed.
They try to stop the company from being liquidated (closing down), and if it can’t it pays as much of a company’s debts from its remaining assets.
The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
A Notice of Intention is used to inform concerning parties that a company intends to enter administration.
It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated.
Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.
She said: “It’s sad news! It’s a well-established and respected business that has been operating in the valley for many years. It’s sad they are in this position.
“The impact this will have on the workers is a concern and a worry. It’s a tough time for all small businesses at the moment.
“It’s quite upsetting, and we feel for everyone involved in this.
“The business has been a big part of the local community and some events we run, including those around Bonfire Night.”
Winfields has been approached for comment.
Why are retailers closing shops?
EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre’s decline.
The Sun’s business editor Ashley Armstrong explains why so many retailers are shutting their doors.
In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping.
Falling store sales and rising staff costs have made it even more expensive for shops to stay open.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April 2025, will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed.
The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing.
Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns.
Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead.
In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few.
What’s increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online.
They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places.
The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.