TJ Hughes, the discount department store chain, is reportedly on the brink of appointing administrators for its outlet business, which may include eight stores. This decision comes as the company acknowledges the shifting retail landscape and the need for its business to evolve. While the total number of stores being affected is small, TJ Hughes expressed sadness about the situation and emphasized the importance of maintaining strong relationships with landlords.
The company believes that by taking these steps, it will be better positioned to protect its remaining businesses, explore strategic acquisitions, save jobs, and provide greater security for the group as a whole. This move by TJ Hughes underscores the challenges many retailers face in staying relevant and profitable amidst changing consumer preferences and increased online competition.
Interestingly, TJ Hughes has experienced its fair share of challenges in the past, having entered administration in 2011. However, the company was subsequently acquired by its current owners, who breathed new life into the business. In late 2018, following the collapse of some of its competitors, TJ Hughes expressed optimism as it returned to profitability. For the year ending January 31, 2018, the Liverpool-based firm reported pre-tax profits of £1.37 million, a remarkable improvement compared to the pre-tax loss of £0.71 million the previous year.
Unfortunately, the current financial performance of TJ Hughes remains uncertain as there have been no recent filings of full-year accounts. Only time will tell how the company has weathered recent challenges and whether it will emerge stronger in the face of the evolving retail landscape.