Colorvision calls in receivers:The Investment Column
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Your support makes all the difference.Colorvision, the troubled Liverpool-based television and video retailer whose management slogan was "izzy whizzy let's get busy", collapsed into receivership yesterday threatening 74 shops and 800 jobs.
The company blamed poor trading and the effects of the Office of Fair Trading decision last May that it was "minded to revoke" Colorvision's credit licences following customers' complaints.
Colorvision has debts of pounds 1.5m and was expected to record a loss including exceptional items of pounds 4m this year compared with a pounds 1m profit in 1995.
Colorvision shares were suspended yesterday afternoon pending clarification of the company's financial position. The announcement that it had called in Arthur Andersen as administrative receivers followed soon afterwards. The board said it had taken the decision "in view of the company's current and anticipated trading levels together with its worsening cash flow position".
Colorvision is the latest in a long line of electrical retailers to be laid low by the cut-throat market. In the past few months both Escom and Powerstore have also called in the receivers.
Colorvision has been in dire straits since the OFT issued its "minded to revoke" notice. In May it called in new management led by executive chairman Sir Brian Wolfson. They cut costs which included some shop closures and redundancies.
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