Retail chain facing administration

Dec 22 2008

Another high-street retail chain was on the brink of administration after a period of poor sales left it struggling.

Whittard of Chelsea, the tea and coffee retailer, has lined up Ernst and Young as administrators, a source close to the company confirmed.

The source added: "Whittard is still trading and it has not filed for administration yet. It's still talking to potential buyers.

"Ernst and Young have been appointed as administrators though should it go into administration."

"Whittard is struggling at the moment just like everyone else," a source confirmed.

If the high street chain does go into administration "buyers could potentially still buy it, as a whole or part of the business".

Whittard, which has 135 stores in the UK, was bought by the investment company Baugur in 2005 for approximately £21 million.

It was originally founded by Walter Whittard in 1886, trading in Fleet Street.

Ernst and Young declined to comment.