More than 160 jobs have been cut at Fabric Warehouse after the homewares and curtains chain fell into administration today.

Leonard Curtis, the retail recovery specialist, said that deals were in place to sell on about 15 of the retailer’s 31 stores but admitted that the rest would have to close.

Neil Bennett, a director of Leonard Curtis, said: "By late last year the business was already in difficulties, due, in the view of the directors, to consecutive interest rate rises and a challenging retail environment and the business in its current form became unsustainable."

The collapse is the latest in a series of corporate failures on the high street since the turn of the year.

Dolcis, Ethel Austin, Base, Sleep Depot and Toyzone are among a dozen retailers to have fallen into administration as customers cut back.

Retail experts have warned that 100,000 jobs could go across the retail sector over the next two years.

Baugur, the Icelandic investment group, sold MK One, the value fashion chain to Hilco, the retail restructuring firm, last week and industry insiders believe many of MK One’s 172 stores could close. Hilco has refused to comment.

Fabric Warehouse, which is based in Rotherham, was bought by The Furnishing Place from the Homestyle Group in 2004. It generated around £25 million of revenue in the year to April 2007.

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