Fri, 18 Jul 2025 | ADMINISTRATION
Administrators are seeking a buyer following the collapse of a major furnishing and fit-out specialist. London-headquartered David Phillips Furniture Group provides furniture to the residential property and build-to-rent sectors.
The company, which was founded in 1998 and also had a major base in Manchester, was highly regarded for its tailored furnishing packages and end-to-end service offering and served a nationwide customer base of developers, property professionals and institutional landlords.
In the year to March 31 2024, the company generated turnover of £28.4 million, up from £23.6 million a year earlier, and moved from a post-tax loss of over £3 million to a profit of approximately £2.3 million.
Despite its strong standing, administrators said that financial performance across the group had been hampered over the past year by factors including margin pressures and the downturn in the UK construction industry.
The group’s management undertook efforts to improve operational efficiency and strengthen cashflow, but the business continued to come under mounting financial pressure.
Advisers were subsequently engaged to undertake an accelerated options process, which included efforts to secure a sale of the business or refinancing. However, with no solvent options available, the directors opted to appoint administrators.
Sam Birchall and Howard Smith of Interpath were appointed as joint administrators of David Phillips Furniture Group on July 15, with the group’s main trading operations ceasing and the majority of its 134 employees made redundant.
The group’s furniture rental business continues to trade, but administrators are now exploring all available options for a sale of the wider business and its assets, including the brand.
Joint administrator and Interpath Managing Director Howard Smith commented: "Like many businesses in the sector, David Phillips has faced significant macroeconomic and industry-specific challenges in recent times. Our priority now is to support affected employees and stakeholders, while pursuing a sale of the business or its assets."
Fellow joint administrator Sam Birchall said: "David Phillips has been a trusted name in the property furnishings market for over 25 years, known for its quality, service and scale. We are now seeking buyers for the business and its assets and encourage interested parties to get in touch as soon as possible."
In the group’s most recent accounts, its fixed assets were valued at around £328,000 and current assets at approximately £10.1 million. However, net liabilities at the time exceeded £16.6 million.
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