Toby Banfield, David Baxendale and Zelf Hussain of PwC have been appointed as administrators of The Sofa Workshop Limited on 31 March 2022.
The Company, a mid-market UK upholstery retailer, has 16 stores across the UK. Despite achieving significant revenues, these have been outweighed by trading losses, especially in light of Covid-related supply chain disruption and significant increases in transportation costs on importing goods from Asia into the U.K. over the last year. Consequently, the business has been unable to meet payments as they fall due and has remained reliant on the support of its shareholder.
Given the cash flow position of the business, potential sale options were explored with the aim of a purchaser providing the funding required to continue to deliver the business plan and take the Company forward. However, no viable offers were received.
Immediately following the administration appointment, the existing customer order book was sold to Timothy Oulton United Kingdom Limited (“Timothy Oulton”), the owner of The Sofa Workshop Limited and part of the Halo Group (the “Group”) and we anticipate there will be no disruption to the manufacture of your orders. It is the intention of Timothy Oulton to fulfil all existing customer orders on the terms which have previously been agreed. Please contact SW_orders@timothyoulton.com or phone 0800 599 9318 to discuss your order directly. Please note that a high volume of calls are expected so it is better to email.
Further information regarding the administration will be available here shortly.
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