Almost 100 jobs lost or at risk as cosmetics firm collapses
- Credit: Archant
Thirty-seven workers have lost their jobs and 60 more face an uncertain future after a beauty and cosmetics firm collapsed.
Pecksniff’s, which operates its headquarters, distribution site and a store from the Highbury Road industrial estate, Brandon, has gone into administration.
The company, whose main customer is department store TK Maxx and its American counterpart, TJ Maxx, has 97 employees at the Suffolk base off the A1065 London Road.
The majority of workers had either been furloughed or working from home for the last three months amid the coronavirus crisis, but most were called to a meeting on Thursday afternoon (June 11) and told the news.
Others were unaware of the collapse until receiving an email at 10pm on Friday evening.
Glyn Mummery and Paul Atkinson, of business advisory firm FRP, were appointed joint administrators of Pecksniff’s Bespoke Fragrances and Cosmetics Limited from June 12.
Upon appointment, 37 members of staff were immediately made redundant.
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FRP said Pecksniff’s had cited a “significant and unsustainable fall in orders in recent months that impacted its ability to meet its liabilities” as the reason for its collapse.
The remaining 60 staff members have been retained by the administrators to enable the business to continue trading while they “explore all options for the company” and fulfil an outstanding contract.
The firm’s two stores, in Brandon and Brighton, remain closed having been shut already as a result of government restrictions enforced during the COVID-19 pandemic, while online sales are suspended.
Joint administrator Glyn Mummery said: “The immensely challenging retail environment has affected many businesses across the industry’s supply chain and Pecksniff’s is no exception.
“Without the prospect of a significant uplift in trading to sustain the future of the business in its current form, the directors made the difficult decision to file for administration.
“We will now review all options for Pecksniff’s, including a possible sale process for the business and its assets. Our team is working with the staff to support them in making claims to the redundancy payments service.”
Pecksniff’s has been contacted for comment.