Administrators say HJ Berry collapse was unavoidable

There was no prospect of a business sale that would have rescued HJ Berry, one of Lancashire's best-known furniture-making companies, according to administrators. After reports of its collapse last week, the business was officially placed in administration on Monday (15 February).

Having traded for more than 160 years, the Chipping-based table and chair manufacturer opened insolvency talks with CLB Coopers and filed an intention to appoint administrators.

"There is no prospect of turning around the existing business or enabling even a limited restart of trading, and no realistic hope of finding a buyer of the business as a going concern," joint administrator Mark Getliffe stated this week.

HJ Berry's £9 million final salary pension fund is believed to be one of the liabilities that made it insolvent, with HM Revenue and Customs confirmed as one of its creditors.

Getliffe claims the £1 million offered to the company by Channel 4 star Sir Gerry Robinson last year wouldn't have made much difference to its ability to maintain an 80-strong workforce in a dying industry. The firm turned down the investment because the business mogul asked for a 60 per cent stake in return for his cash and loans.

The administrator hopes, however, that the site of the manufacturing business can be be put to another use in leisure, "eco-friendly commerce" or nursing care.

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