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A popular family furniture chain has entered administration, forcing the closure of 11 stores and putting dozens of staff out of work. Pagazzi Lighting, renowned across Scotland and Northern England, was founded nearly half a century ago and has become a go-to specialist for decorative lighting, mirrors and home accessories.

However, amid rising costs and a slump in high street spending, the Thornliebank-based business has been forced to shut the doors to 11 of its retail stores and axe 70 staff just days after it appointed administrators. Despite operating for 45 years, the company's previous success was not enough to shield it from a "sustained period of poor trading" and mounting financial pressures, according to experts.

Despite a major restructuring only two years ago, George Lafferty of BTG was appointed administrator last week amid Pagazzi Lighting's ongoing cashflow problems amid increased operating costs and reduced consumer spending.

Prominent site closures include Braehead Shopping Centre in Glasgow and Uddingston, south-east of Glasgow city centre. Administrators confirmed the 11 affected stores officially closed on Wednesday (March 4), according to The Sun.

Thomas McKay, managing partner of BTG, 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.

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"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 Wednesday, 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."

The company's online division, Pagazzi Lighting (Web) Limited, has stepped in to acquire the business and its assets, meaning the firm will continue to exist - in a reduced form - online and through its remaining retail outlets.