UK furniture shops collapse into administration – family business since 1980 | UK | News
News is the final blow to the main street (Image: Getty)
A long-established British lighting retailer has gone into administration, leading to store closures and dozens of job losses. Pagazzi Lighting, a family-owned company founded more than 45 years ago and based in Thornliebank near Glasgow, has appointed administrators after struggling with persistently weak trading and rising cost pressures.
The family-run business, which specializes in decorative lighting products, mirrors and home accessories, operates a network of stores across Scotland and the north of England, as well as an online store. Founded in 1980 by Laura and Alan Pagan, the company has built its reputation on “the desire to provide unique and affordable options” to its customers. However, executives confirmed that the company has now closed 11 retail stores, resulting in around 70 layoffs.
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Signs were seen in stores informing them that the stores were closed. (Image:-)
A sign appeared on the door of the shop on Beach Boulevard, one of Aberdeen’s busiest retail parks, saying it was “permanently closed effective 25/02/26”.
One person said on social media: “Oh my god he loved that store, there’s no more decent space left.”
Another added: “I loved Pagazzi. Sad to see them go.”
The collapse reflects wider pressures facing the UK retail sector, with rising business costs, falling consumer spending and increasing competition from online retailers; all of which places a heavy burden on traditional high street businesses.
Executives said shrinking margins and slowing consumer demand have created significant challenges for the company’s physical store network.
Despite the administration, some parts of the business will continue to operate. The company’s online retail division acquired the business and assets; This means the Pagazzi brand will survive in a scaled-back form, focusing primarily on digital sales rather than a nationwide store property.
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The restructuring is the latest example of a long-standing retail brand being forced to rethink its business model as consumer behavior changes and the economics of maintaining large brick-and-mortar store networks become increasingly difficult.
But for many employees and customers the administration is ending the familiar high street presence that has traded in parts of the UK for decades.
BTG managing partner Thomas McKay, who is leading restructuring activity in Scotland and Northern Ireland, said: “The retail sector has had a very difficult last few months in Scotland and this has also affected the lighting sector, mainly due to increased competition and higher trading costs.
“Lower margins, slowing consumer spending and rising operating costs are creating challenges for many high street retailers and unfortunately these are the main factors that have resulted in Pagazzi stores and concessions being no longer able to trade. “The 11 affected stores closed on 25 February after BTG consulted staff about the anticipated closure.
“There have been 70 redundancies resulting from the inevitable closure of retail outlets that are unfortunately no longer able to trade. We are working closely with these affected individuals to help them access their entitlements, alongside Partnership Action for Continued Employment (PACE) and the Redundancy Payments Service, while providing these staff members with the support and advice they need.”
