Partner Article

55 North East jobs at risk as Pawnbrokers enter administration

A total of 55 jobs are in danger in the North East as a national firm of jewellers and pawnbrokers have entered into administration.

Albemarle & Bond Holdings plc, Albemarle & Bond Jewellers & Pawnbrokers Limited and Herbert Brown & Son Limited which trade as Albemarle Bond and Herbert Brown, are the second largest pawnbroker in the UK.

The firm operate 183 branches, 12 of which are in the North East.

A slump in gold prices forced 40 of the group’s “pop-up” branches to close in 2013, and similar pressures now mean the company has entered into administration.

Mike Jervis, Peter Dickens, Toby Underwood and Stuart Maddison of PwC have been appointed as joint administrators.

Mike Jervis said: “The group expanded its branch portfolio in the period to early 2013 and ended up with too many underperforming outlets. It then explored a rights issue to raise funds, before attempting a solvent sales process.

“Together, these efforts lasted more than six months. Despite this history many different parts of the group, and large swathes of its shops, remain profitable.

“Our priority is to keep all pledged items safe and available for redemption as normal. We plan to sell all or part of the business to protect as many jobs as possible and we have already paid, or will be paying all staff - including accrued bonuses - as normal in March. Also, all landlords have been paid.

“However, some redundancies may be necessary depending on the outcome of efforts to sell the business. Every branch will initially remain open as sale discussions progress. This also enables customers to continue to redeem their goods as normal as they pay off their loans.

“The group and PwC are doing all that they can to support employees through this difficult time and will work with government agencies in order to support anyone affected by potential redundancies.”

This was posted in Bdaily's Members' News section by Tom Keighley .