FURNITURE chain Conroys is in administration, it was revealed yesterday.

The family-owned company had run into cash-flow problems, and administrators were called in last week in an attempt to save the Gateshead business, which employs 92 people.

Conroys, which was opened 42 years ago, blamed increasing competition in the furniture retail market, particularly from bigger companies, for its problems.

It has an annual turnover of about £20m and has six stores across the region including at Gateshead's MetroCentre.

The shops have been temporarily closed, but employees are being kept on during the administration process. There are no plans for redundancies at the moment.

Administrators Simon Allport and Neil Matthews, of Ernst and Young, said they would try to sell the business as a going concern and there had already been some interest.

Conroys' customers will be contacted in the coming days and told of the present situation. The administrators hope all outstanding orders can be met where people have paid a deposit or the full amount for any furniture.

Conroys was started by Hazel and John Conroy, the parents of the current managing director Michael Conroy, in Stanley County Durham in 1960.

It has expanded in recent years, taking on 40 staff two years ago.

At its height the company had 11 stores, employing 150 people, and there were plans to float on the London Stock Exchange.

Last August, however, it closed its store in Stanley to consolidate its position and two shops in Yorkshire were also closed recently.