Rapid customers' cash down plughole

CUSTOMERS who had put down a third of a million pounds in deposits with collapsed DIY retailer Rapid Hardware are unlikely to see their money again. 

And 100 staff made redundant when the Liverpool family firm went bust in February, will also remain unpaid, a report from administrators reveals. 

Rapid relocated from Renshaw Street to the George Henry Lee store in 2009, when the latter moved into Liverpool ONE along with many established city centre retailers. 

Redundancy

Blaming 2012's six-month closure of Central Station for a dire slump in footfall, it appointed administrators Duff & Phelps in February this year when "continued poor performance" meant the business would be unable to reduce its £372,000 overdraft with NatWest. That amount was not expected to be recouped in full, it said.

Preferential claims are thought to be about £250,000 but compensation for staff who lost their jobs will be dealt with by the government's Redundancy Payments Office. 

Meanwhile, unsecured creditors total almost £2.5m. This included £330,000 from 600 customers who paid deposits for products such as kitchens and bathrooms just before the business went under.

Rapid reported a turnover of £11.6m for the 17 months to 30 June 2011 and a pre-tax loss of £1.8m.

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