KPMG to take administrator's seat at Courts
KPMG is set to take over at Courts after the furniture chain failed to renegotiate loans with its lenders.
Courts has racked up debts of £280m, and was desperate for immediate additional funding, which bankers – including Barclays and Royal Bank of Scotland – were unwilling to provide.
KPMG said: ‘We can confirm we are advising banking groups of Courts Plc & UK. We hope to be in a position very soon to make a statement, but at the moment we are not officially appointed.’
If it is appointed, the firm will face the challenge of saving a business with 1,400 UK employees. Its shares, suspended yesterday at 13.5p, had been trading at 300p as recently as April, before a series of profit warnings hit investor confidence.