Pagazzi Lighting: furniture, lights chain collapses after 45 years as 11 stores shut - including in Yorkshire
Administrators say rising costs and slower consumer spending pushed the retailer into financial trouble 📉
- Family lighting and furniture retailer Pagazzi Lighting has fallen into administration after 45 years of trading
- Eleven stores across the UK have closed, including branches in Castleford and Rotherham
- Around 70 staff have been made redundant following consultations with employees
- Administrators say rising costs, weaker consumer spending and tougher competition hit the business
- The brand will continue online and through a smaller number of remaining Scottish stores
A long-established family furniture and lighting retailer has fallen into administration after more than four decades on the high street, with 11 stores shutting their doors, including two in Yorkshire.
Pagazzi Lighting, which has traded for around 45 years, has closed a number of outlets across the UK after a difficult trading period that administrators say was driven by rising costs and weaker consumer spending.
The closures include branches in Castleford and Rotherham, both of which were among the latest locations affected. A Pagazzi Lighting locations did once exist in Doncaster, though this was closed in 2023.
The retailer, originally founded in Thornliebank near Glasgow, built its reputation as a specialist supplier of decorative lighting, mirrors and home accessories.
Over the years it expanded beyond Scotland into parts of northern England, developing a loyal customer base and a presence in several major retail parks and shopping centres.
But administrators say the business had struggled with a combination of higher operating costs, increased competition and a slowdown in retail spending.
George Lafferty of the restructuring firm BTG Advisory was appointed administrator after the company encountered ongoing cash-flow difficulties.
Administrators confirmed that 11 stores across the group’s retail network officially closed on Wednesday (February 25) following consultations with staff. The closures have resulted in 70 redundancies.
Thomas McKay, managing partner of BTG, said the wider retail environment had created serious challenges for many high street businesses.
He said: “The retail sector has seen some very tough months of late in Scotland and this has also affected the lighting sector, mainly due to increasing competition and high trading costs.
“Reduced margins, slower consumer spending and rising operating costs are creating challenges for many high street retailers, and unfortunately, these are the main factors that saw the Pagazzi stores and concessions no longer able to trade.
McKay added that staff had been informed of the closures during consultations ahead of the stores shutting.
“Sadly, there have been 70 redundancies arising from the unavoidable closure of the retail outlets that were no longer able to trade,” he said.
Administrators said they are working with affected employees to help them access support and redundancy entitlements through the Redundancy Payments Service and the Partnership Action for Continuing Employment scheme.
Despite the closures, the Pagazzi brand is set to continue, albeit in a reduced form. The company’s online arm, Pagazzi Lighting (Web) Limited, has acquired the business and its assets.
The deal means the brand will continue trading online and through a smaller number of remaining Scottish stores, even as its high street presence is significantly scaled back.