Floors-2-Go can't afford to pay employees

Flooring retailer Floors-2-Go, which entered into administration this week, has confirmed that its employees will not be paid.

The laminate flooring specialist has said that over 100 employees will not be paid, including the 97 that were made redundant, The Independent reported.

A source close to Floors-2-Go has alleged that up to seven senior managers, who have put their own money into the company, could also lose their investment.

A spokeswoman for administrator Kroll said: 'Unfortunately, employees made redundant upon the appointment of the joint administrators did not receive their final pay for the period prior to the appointment due to cash flow constraints of the business.'

A senior member of a different restructuring firm has said that it was standard practice for employees made redundant by an employer entering administration would receive statutory redundancy payment from the government as they would become unsecured creditors the paper stated.

Further reading:

Staff at flooring retailer to go empty handed

Floors-2-Go appoints Kroll joint administrators