YORK’S high street could be dealt another blow as uncertainty shrouds the future of one of the city’s flagship retailers.

The city’s branch of home furnishing store Habitat, in High Ousegate, which employs about 20 staff, is one of 30 stores which have been placed in administration after only the brand and three London stores were sold, putting about 740 jobs at risk.

Private equity group Hilco bought Habitat, originally set up by designer Sir Terence Conran in 1964, from Ikea owner Ikano Group in 2009, after it made losses of 100 million euros over three years.

Hilco said it had made progress in reducing the struggling company’s losses, but a return to profitability for the business in the UK appeared unlikely in the near term as many of its stores were expensive and poorly-located for a furniture retailer.

Home Retail Group, which also owns Homebase and Argos, announced yesterday a £24.5 million cash deal to buy exclusive use of the Habitat brand, its designs and intellectual property in the UK and the Republic of Ireland, as well as its UK website and three of its London stores.

The remaining stores, which also include one in Station Parade in Harrogate, where about 15 people work, will continue to trade as usual while administrators Zolfo Cooper talk to interested parties to assess all possible options for the remaining parts of the business.

Fraser Gray, partner of Zolfo Cooper, said they would attempt to secure a buyer for part or all of the remaining business.

He said: “The company has been suffering from cashflow difficulties in recent months.

“This, combined with the current tough trading environment for retailers, has led to the need for our appointment.

“We will continue to assess all possible options for the remaining parts of the business and would welcome expressions of interest from interested parties.

“In the meantime, the company will continue to fulfil existing customer orders and honour all vouchers issued prior to the appointment.

“All customer queries should be directed through existing channels,” he said.