Ponden Mill has fallen into administration just a month after it was bought for £6 million.

Heavy overheads – particularly Ponden Mill’s distribution and warehousing costs – rather than sales were blamed for the home furnishing retailer going into administration.

Value variety retailer Instore is expected to buy 30 of its stores today with more store sales expected in the coming days. Northern Irish chain Bedeck is also set to buy 10 stores.

It is thought that 44 head office staff have been made redundant. Ponden Mill employs 1,300 people.

The 250-store home furnishing retailer was bought in November by a consortium of retail recovery specialist Hilco and hedge fund Agilo. Alan Hudson at Ernst & Young has been appointed as administrator.

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