Jonny Marston, Mark Firmin and Howard Smith from KPMG's restructuring practice have been appointed joint administrators to Collectables Retail Ltd and the related business Xystos Wholesale Ltd.

The 27-year old family business trades as a gift retailer from 11 stores across the North East, Yorkshire and Cumbria, and as a furniture retailer from three units at Collectables Retail Park, Stockton.

Joint administrator and KPMG restructuring director Jonny Marston said: 'Sustained difficult trading conditions have resulted in the business facing cash pressures with a further increased demand for working capital in preparation for the Christmas trading period. We are now assessing the company's financial position and the options available, whilst marketing the business and assets for sale.'

The administrators have closed the stores while they conduct their initial analysis of the company. On the day of appointment 25 of the firm's 200 employees were made redundant from the head office, with administrators saying the situation is uncertain until a trading strategy has been determined.