Page last updated at 07:19 GMT, Wednesday, 12 May 2010 08:19 UK

Derry's department store in Plymouth facing closure

Derry's
If not bought, Derry's will close in four weeks

A Plymouth department store which went into administration is to close if another buyer cannot be found, receivers have said.

Vergo Retail Ltd took over the Derry's store in February 2009. It went into administration earlier this month.

Consultants MCR said that Derry's and another eight stores across England would face closure if not bought as going concerns within four weeks.

If Derry's is closed, about 80 jobs in the city will be lost.

'Difficult trading'

Sarah Bell, partner at MCR, said it was deemed that the nine stores - including shops in Clacton-on-Sea, Colchester, Dovercourt and Witham in Essex, Stowmarket in Suffolk, Norwich and Sunderland - should close following a financial review, affecting a total of 335 jobs.

She said the stores "were loss-making and could not continue to trade in the short-term without implementing immediate cost saving measures".

Ms Bell added: "There is an opportunity for interested parties to come forward and rescue the remaining business as a going concern."

Vergo blamed a "difficult trading environment during the economic downturn".

Vergo also owns Homemaker stores in Devon - including Exmouth, Kingsteignton and Cothill on the outskirts of Plymouth - as well as one in Launceston, Cornwall.

No announcement has been made about their future.



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SEE ALSO
Two historic stores set to close
11 May 10 |  England
Administrators take over stores
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