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UK furniture shops collapse into administration - family business since 1980
Reach Daily Express | March 6, 2026 11:40 PM CST

A long-established British lighting retailer has fallen into administration, leading to the closure of stores and dozens of job losses. Pagazzi Lighting, a family-owned business founded more than 45 years ago and headquartered in Thornliebank near Glasgow, has appointed administrators after struggling with sustained poor trading and mounting cost pressures.

The family-run business specialised in decorative lighting products, mirrors and home accessories, operating a network of stores across Scotland and the north of England alongside an online shop. The company, founded in 1980 by Laura and Alan Pagan, built its reputation on its "desire to offer unique and affordable options" to customers. However, administrators confirmed the company has now closed 11 retail stores, resulting in around 70 redundancies.

A sign appeared on the door of the shop on Beach Boulevard, which is one of the busiest retail parks in Aberdeen, stating that it had "Permanently closed as of 25/02/26".

One person said on social media: "Omg loved that store, no decent places left now".

Another added: "Loved Pagazzi. Sad to see them go."

The collapse reflects wider pressures facing the UK retail sector, with rising operating costs, reduced consumer spending and increased competition from online retailers all weighing heavily on traditional high-street businesses.

Administrators said reduced margins and slower consumer demand had created significant challenges for the company's physical store network.

Despite the administration, parts of the business will continue to operate. The company's online retail division has acquired the business and assets, meaning the Pagazzi brand will survive in a reduced form focused primarily on digital sales rather than a nationwide store estate.

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The restructuring marks the latest example of a long-standing retail brand being forced to rethink its business model as consumer behaviour shifts and the economics of maintaining large physical store networks become increasingly difficult.

For many employees and customers, however, the administration brings an end to a familiar high-street presence that had traded for decades across parts of the UK.

Thomas McKay, managing partner of BTG in Scotland and Northern Ireland, who managed the restructuring activity, said: "The retail sector has seen some very tough months of late in Scotland and this has also affected the lighting sector, mainly due to increasing competition and high trading costs.

"Reduced margins, slower consumer spending and rising operating costs are creating challenges for many high street retailers, and unfortunately these are the main factors that saw the Pagazzi stores and concessions no longer able to trade. The 11 affected stores closed on 25 February, after BTG consulted with staff about the anticipated closure.

"Sadly, there have been 70 redundancies arising from the unavoidable closure of the retail outlets that were no longer able to trade. We are working closely with these individuals affected to assist them with access to their entitlements in conjunction with Partnership Action for Continuing Employment (PACE) and the Redundancy Payments Service, as we provide these staff members with the support and advice they need."


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