Decline and administration
On 22 January 2010 it was announced that Lewis's of Liverpool was to close by June 2010 as the lease from the landlords, Merepark, expired then and it could not be renewed owing to a planned redevelopment of the building. As a result, a closing down sale was launched to sell around £5 million of stock, as well as fixtures and fittings. Vergo's head office, which was also located in the Renshaw Street premises, would continue to operate from there in the short term until alternative accommodation was available.[8]
On 7 May 2010 Vergo was placed into administration, with MCR appointed as the administrators.[2] From 11 May 2010, 335 staff were made redundant and it was announced that there would be ten store closures within the next four weeks unless a buyer was found. These were Lewis's of Liverpool (already scheduled for closure), Robbs of Hexham, Joplings of Sunderland, Derry's of Plymouth, the "Fashion, Home & More!" stores in Witham, Clacton-on-Sea, Stowmarket and Dovercourt, the department store in Norwich and The Jewellery Store in Colchester.[9] This left ten stores open, namely the Homemaker stores in Kingsteignton, Launceston, Exmouth and Cothill (Plymouth); the Vergo at Home stores at Stanway (Colchester) and Clacton-on-Sea; the "Fashion Home & More!" store in Felixstowe and the Ipswich, Great Yarmouth and Colchester department stores. By 21 May 2010, Beales had lodged a formal notice of interest in Robbs of Hexham, whilst the administrators asked the Buccleuch Group, owners of the building, and Northumberland County Council to waive rent and rates for ten weeks, to allow the business to be continued to be marketed as a going concern.[10]
On 25 May 2010 it was announced that closing down sales would begin at all stores in the chain, managed by Hilco,[11] and Lewis's would close on Saturday 29 May. By this point the Dovercourt store had closed and 341 staff had been made redundant across the chain.[12] The administrators continued to negotiate with various potential purchasers, who were interested in all or part of the business. The sales were to ensure that there was sufficient cash to fund the business in the short term.[13] One of these parties was revealed to be Chris Dawson, owner of The Range, who said "I am interested in a few of the stores, parts of the group and all of the stock."[14] Tony Brown, chief executive of Beales, confirmed that he was still interested in Robbs[15] and Beales acquired Robbs on 4 June for £250,000.[16] By 26 June 2010 just four stores remained open, and these closed within a week.[17]
The company was dissolved in August 2014.[21]
