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High street struggles as two more stores file for administration

By Lucy Hutchings on Friday 5 December 2008

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The Pier, Lifestyle news, Marie Claire

Homewares chain The Pier and menswear company Envy became the latest retailers to call in the administrators yesterday.

The Pier, which has 31 stores and employs more than 400 people, has called in administrators, although its stores will remain open for the time being. Visit its website today and there is already 50% off everything, alongside an administration statement on its homepage.

Rod Weston, a partner at Mazars, the company's administrator, commented, 'The Pier has encountered difficulties due to the harsh trading conditions of the current economic climate. The household contents market has been particularly hit within the retail sector and the business has been impacted by a lack of consumer discretionary spend.'

Envy, a menswear chain with 55 stores, fell into administration for the second time this year.

As the latest two took the fall, rumours are rife as to who will be next.

Music retailer Zavvi, womenswear chain Phase Eight, and sportswear store JJB are all reportedly struggling in the current climate.

Zavvi, formerly Virgin Megastores, has denied that it is poised for administration, although it stopped selling CDs, DVDs, and games online this week, after suffering serious stock shortages.

As for Phase 8, and although the company is yet to comment on its situation, it reportedly made a bid for rescue funds this week.

JJB Sports has confirmed its situation, and yesterday released a statement on the rapid fall of its share prices, explaining, 'The company continues constructive discussions with its debt providers.'

Following the shock fall of Woolworths last month, which employs 30,000, the industry is bracing itself for extensive job losses.