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A long-established family business has collapsed into administration after more than 45 years. The independent UK lighting specialist had been trading since 1980 and operated stores across Scotland and England. It has shut 11 stores following the insolvency process.

Around 70 jobs have been lost while a small number of sites reportedly continue to trade on a reduced basis. Beyond lighting, Pagazzi Lighting had expanded its offering in recent years to include a wide range of homeware and furniture products.

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The retailer sold home décor items such as mirrors, rugs, throws, candles and wall art, alongside larger furniture pieces including dining sets, coffee tables and other occasional tables as it sought to broaden its appeal to shoppers.

Brand new documents have now revealed that "there will be insufficient funds available" for unsecured creditors owed £3.4 million by the company, The Herald Scotland reports.

Administrators BTG confirmed that the business has limited funds remaining, with recent asset sales raising only about £125,000.

They said in a newly published report: "Based upon realisations to date and estimated future realisations there will be insufficient funds available to enable a dividend to be paid to the unsecured creditors."

The administrators said the company's concessions division accounted for an estimated £1.675 million in unsecured creditor claims, while a further £1.795 million was linked to its services arm, although the final figures could still change as the administration process continues.

Rising costs across the retail sector, combined with shifting consumer habits towards online shopping, have significantly impacted performance. The administrators also pointed to broader financial pressures, including higher wages, increased National Insurance contributions, elevated business rates, and rising energy and logistics expenses.

The business reported losses of around £500,000 between April 2025 and February this year.

The report stated: "In recent years, the company's trading performance has been impacted by the same challenges affecting many UK retailers."

It added: "In particular, the retail sector has been affected by a series of government-imposed and regulatory cost increases, including rises in the National Living Wage, increases in employer National Insurance contributions and continued pressure from business rates and occupancy costs.

"These have been accompanied by higher energy, logistics, and supply chain costs.

"Collectively, these factors have materially increased the fixed cost base of store-based retail businesses at a time when footfall and demand have become more volatile.

"Whilst the Pagazzi brand has continued to generate sales and retain customer recognition, the legacy store-based operating model and fixed cost structure has become increasingly misaligned with the realities of the market."

Thomas McKay, managing partner of BTG, previously 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 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."