Archive for April 4, 2011

Courts PLC goes into administration in 2003

In December 2003 Courts PLC breached a number of banking covenants. PWC were appointed by a banking syndicate to safeguard its debts.

On Monday, 29 November, 2004 shares in Courts plc were suspended at 13.5p and the company went into administration with debts of £280 million, following a drop in UK sales and serious damage caused by Hurricane Ivan to stores in its Caribbean arm.

PWC earned record fees for both the pre-administration and post-administration work.

The administration caused public controversy because the sudden store closures had seen thousands of customers left out-of-pocket and without the furniture they had ordered and deposits they had paid. A number of outlets were besieged and in some cases seriously damaged by hordes of angry customers.

SB Capital, owners of Furnitureland, acquired the largest number of branches. Today all branches of Courts in the United Kingdom have been sold off or closed down but there continues to be a presence in the Caribbean and Asia.