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Retail Spotlight – Dwell ceases trading


Posted At: 21 June 2013 11:10 AM
Related Categories: Administrations, Retail, Retailers, Store Closures


Following a cash-flow crisis and failed attempts to find a buyer or secure fresh working capital, Duff & Phelps were appointed as administrator to the furniture chain, Dwell.
SnapShop now brings to you an overview of the retailer’s trading over the years and highlights of the collapse.



To us it looks like a typical case of biting off more than you can chew – in the last two years the retailer opened over 9 new stores and had plans to open around a hundred or so more in the future.

Financial indicator, P2 improved marginally in 2011, but not to the extent of indicating sustainable health, whilst there has been no measurable return on trading assets in the past three financial years. The latest accounts showed an over-reliance on creditors, a shortage of working capital which may have inhibited sales and despite securing a significant level of refinancing, it’s possible that new store openings at high cost locations may have resulted in the final blow.

20th June 13 - Dwell closed all 23 stores and ceased trading both on the High Street and online with immediate effect - resulting in the loss of 300 jobs. Read more

13th June 13 - Dwell insisted that it is continuing to trade as usual, amid speculation that it is on the brink of administration.

7th June 13 - Future of Dwell was close to being decided after appointing Argyll Partners to explore option.

29th May 13 - Dwell appointed Argyll Partners to explore its options, including the possible sale of the business.

28th Feb 13 - The 52 week period ending 27 Jan 12 represented a successful period, with the company generating sales growth of +3.3% to £34.5m. During 2012, the company successfully opened six new stores, increasing the number of stores to 24, and these are already making a positive contribution to the company. The stores were in Guildford, Cardiff, Leeds, Lakeside Thurrock, Staples Corner (North London) and Birmingham (Bullring).

P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying

14th Nov 12 - Dwell appointed Rebecca Cotterell as its new managing director, replacing founder Aamir Ahmad who stepped down from the role.

28th Aug 12 - Retailer appointed a Director of Multichannel as it seeks to improve its online offering.

1st June 12 - Dwell saw the scope for up to 100 stores as it looks for smaller, quirkier shops.

13th Dec 11 - Dwell agreed a lease on a store at St David’s shopping centre in Cardiff, which will be its first outlet in Wales.

18th Nov 11 - Dwell has bounced back into the black at an EBITDA level as sales grew in the year to January 28 despite a punishing big-ticket market.

2nd Nov 10 - Dwell signed up at Lend Lease's Touchwood shopping centre in Solihull.

3rd Sept 10 - Dwell set out a 33-store expansion plan after securing a £5m investment from a private equity firm.

SnapShop subscribers can view retailer profile, more historic news, accounts and financial standing over the years, by visiting Retailer Directory here.

To stay up-to-date with retail administrations, new retailer entering UK and news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.

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The opinions expressed herein are the personal opinion of the author and are not intended as statements of fact and do not represent the view of SnapShop or Pragma in any way.


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