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Rapid customers' cash down plughole

600 people lose £330,000 in deposits with collapsed DIY store

Published on April 9th 2013.


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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MurphApril 9th 2013.

I heard recently that the Directors are about to buy the business back from the administrators
As usual, the customers and staff will be the ones to lose out while the Directors will make more money

Mickeydrippin'April 9th 2013.

I have said it before and will say it again, Rapid went downhill after they relocated to the G H Lee building. Customers deserted them in droves mainly because, unlike Renshaw Street, there was nowhere nearby to park and sections of the store were then hived-off to Poundland, Textiles Direct and others. Sorry for the those customers who have lost out but the management at Rapid must take the blame.

AnonymousApril 9th 2013.

Those conniving sharks were taking deposits knowing full well that they were going down the pan, shame on them

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