THE directors of TJ Hughes today put the retail business into administration, saying they will now work towards saving as many jobs and stores as possible.

Accountants Ernst & Young were appointed as administrator this morning.

A statement released by TJs owner Endless said: “We have provided TJ Hughes with working capital since March when it was about to fail and knew then that pulling it back from the brink was going to be difficult.

“Trading at the business has continued to be significantly down on last year as a result of difficult retail conditions and the loss of supplier and credit insurer confidence.

“Sadly, on this occasion, a rescue of the company has not been possible and we will now focus on helping the administrator save stores and jobs.”

The administrator will now work with the owners in a bid to rescue as much of the 99-year-old London Road firm as it can.

One possibility could be that Endless, a private equity firm based in Leeds which bought TJs for a “nominal amount” in March this year, will buy profitable stores from the administrator and continue the business, while Ernst & Young will seek to sell the loss-making locations to other parties or retailer.

TJs had seven days of protection from winding-up orders from creditors after filing notice of its intent to appoint an administrator on Monday.

But the ECHO understood that it was unlikely to go the full course and a resolution would be likely sooner rather than later.

Yesterday, a source close to the situation revealed to the ECHO that a variety of  prospective buyers interested in the London Road-based chain had already made contact with Endless and that talks were under way.

The fact several retailers had approached Endless will have raised hopes among TJ’s 4,000-strong workforce throughout its 57 stores that a deal to protect or save jobs could be close.

Shop workers’ union Usdaw was in close contact with Endless to try and protect the interests of its members.

National officer John Gorle said this week’s developments were “devastating news” for staff, but added: “Sadly, it won’t have come as a complete shock to most of them, as they have been at the sharp end of the company’s recent and urgent attempts to reduce costs.”

Despite a £6.8m profit in the financial year to January 2010, the group is believed to have suffered a £10m loss in the year to January 2011, and sales have plummeted by 19% since Endless bought TJ’s in March this year.