A LEADING sofa manufacturer has officially closed up shop, leaving over 100 people without jobs.
The top UK brand was in operation for over 30 years before going into administration.
A popular UK furniture manufacturer has ceased operations after over 30 years in business (stock image)[/caption]
Ashley Manor, which describes itself as “one of the UK’s top sofa manufacturers”, is known for quality upholstered furniture.
However, after failing to find a buyer the company has thrown in the towel with over 100 employees losing their jobs, reports Dudley News.
The furniture manufacturer has had items stocked in stores across the country, including Michael O’Connor Furniture, Sofalistic, and Haskins Furniture.
However, the brand, along with British-designed import business Alexander & James Sofas, has now entered administration.
Administration announcement
Both companies are owned by TCM Living Group, which announced the liquidation news on Tuesday, September 16.
The unsuccessful search for new ownership was confirmed weeks after the companies filed a Notice of Intention to Appoint Administrators on August 27.
They had been unable to secure viable offers that would preserve the businesses.
Opus Restructuring & Insolvency has been appointed as administrator for both firms.
Both businesses ceased trading operations effective immediately, with all factory closures occurring on Monday, September 15.
Inflationary increases in raw material costs, international shipping disruptions, price volatility, and higher labour expenses have been cited as some of the main issues faced by the business.
Reduced consumer demand for big-ticket items amid the cost-of-living crisis was another blow to the brand.
Difficult decision
Andy Kennaugh, CEO of TCM Living Group spoke about making the “extremely difficult decision”.
“Despite our intensive efforts over recent weeks and the support we’ve received, we have exhausted all viable options for securing new ownership that would preserve these businesses,” he said.
“Both Ashley Manor and Alexander & James have been well-respected brands in the UK furniture industry, and we are committed to handling this process with dignity whilst ensuring all stakeholders receive the support they need.”
Meanwhile, Colin Wilson, Managing Partner at Opus discussed the contributing factors to the closure.
What does going into administration mean?
WHEN a company enters into administration, all control is passed to an appointed administrator.
The administrator has to leverage the company’s assets and business to repay creditors any outstanding debts.
Once a company enters administration, a “moratorium” is put in place which means no legal action can be taken against it.
Administrators write to your creditors and Companies House to say they’ve been appointed.
They try to stop the company from being liquidated (closing down), and if it can’t it pays as much of a company’s debts from its remaining assets.
The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
A Notice of Intention is used to inform concerning parties that a company intends to enter administration.
It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated.
Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.
“The current economic climate is particularly challenging for all businesses in the furniture market,” he said.
“The cost-of-living pressures have had a direct impact on recent sales volumes, due to the tight squeeze on discretionary spending for all consumers.”
Both companies are working closely with employee rights specialists from ERA Solutions to ensure all affected employees receive support through the government’s Redundancy Payments Service.
And customers with outstanding orders and suppliers with queries have been advised to contact the administrators directly.
Details will be made available through the companies’ websites and official channels.
More on business
Sky is set to cut 600 jobs in a huge shake-up as it takes on US streaming giants.
Meanwhile, staff at global firm face job losses after warning of redundancy.
B&Q is set to axe over 650 jobs too in huge plan to “simplify” its structure.
And shock as the number of pubs closing every week in Britain is revealed.
Plus, a popular Italian restaurant chain is set to close six branches and cut 190 jobs in deal to save brand.
