Retailer Cuts And Runs As Customers Sofa Loss

Habitat customers could be sitting on the floor after their sofa orders were left in limbo by the state-wide closures of the furniture franchise.

No assurances have been given by the company that customers would eventually receive their goods, and customers are finding it difficult to find out information from the retailer who is said to have 'cut and run' at the end of last week.

A number of anxious consumers who had paid over €2,000 for new furniture contacted radio stations and newspapers after their emails bounced back from the company without reply, and no phone number has been made available by the company.

The company's website, Habitat.ie, said: "Habitat UK Ltd is aware that customers orders have been placed with Conai Designs (Ireland) Ltd and have set up a dedicated customers email address so contact can be maintained with customers."

However, reports from financial sources indicate Conai Designs (Ireland) Ltd, the company that owned the Habitat retail franchise in Ireland, was relying on the repayment of €1.4 million it had loaned to its subsidiary in the North to remain solvent.

However, accounts filed for the company covering the year ending March 2007 show there was a "fundamental uncertainty" regarding the repayment of the money from the Northern Ireland company.

The accounts show that, while gross profit at the two Habitat stores in Dublin and Galway grew from €4.3million in 2006 to €4.8 million last year, the underlying performance was not as strong.

The furniture retailer has yet to provide a statement on move to fulfill their outstanding orders.

(DW)