BusinessBusiness RecoveryFloors-2-Go can’t afford to pay employees

Floors-2-Go can't afford to pay employees

Floors-2-Go has stated it is unable to pay its employees due to money constraints

Flooring retailer Floors-2-Go, which entered into administration this week,
has confirmed that its employees will not be paid.

The laminate flooring specialist has said that over 100 employees will not be
paid, including the 97 that were made redundant,
The
Independent
reported.

A source close to Floors-2-Go has alleged that up to seven senior managers,
who have put their own money into the company, could also lose their investment.

A spokeswoman for administrator Kroll said: ‘Unfortunately, employees made
redundant upon the appointment of the joint administrators did not receive their
final pay for the period prior to the appointment due to cash flow constraints
of the business.’

A senior member of a different restructuring firm has said that it was
standard practice for employees made redundant by an employer entering
administration would receive statutory redundancy payment from the government as
they would become unsecured creditors the paper stated.

Further reading:

Staff
at flooring retailer to go empty handed

Floors-2-Go
appoints Kroll joint administrators

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor