Fri, 27 Jan 2023 | ADMINISTRATION
Bluespot Furniture, a West Yorkshire-based furniture manufacturer, has ceased trading and appointed administrators amid a sustained decline in demand post-COVID. Joint administrators James Sleight and Oliver Collinge of PKF GM will now seek to sell the firm’s remaining assets.
In the company’s latest accounts, for the year ending September 30 2021, it had around £588,000 in fixed assets, with current assets valued at £814,544. At the time, the company’s total liabilities stood at £104,178.
Bluespot Furniture operated in the commercial interiors, house building, build-to-rent and student accommodation markets, designing, manufacturing and installing furniture from its production facilities in Dewsbury.
Despite being a long-established manufacturer, the company has experienced a significant decline in turnover over the last few years, with demand for office furniture plummeting in the wake of the COVID-19 pandemic, which has established a long-term trend for working from home and hybrid working.
The firm’s struggles were compounded when its trading premises in Dewsbury were sold off by its landlord. The company’s entire workforce was made redundant, with administrators subsequently appointed on January 20 2023.
Joint administrator James Sleight said: "Unfortunately the demand for office furniture was understandably very low during COVID and is not expected to recover to pre pandemic levels.”
"The company had obtained support under various government schemes during the pandemic and with low demand, rising costs and pandemic debt to repay, the directors did not feel the business was sufficiently viable to justify continued trade.”
"Following our appointment, we are now supporting employees in accessing government redundancy support and seeking to maximise realisations through a disposal of the remaining company assets and collection of its book debt ledger.”
Regarding the struggles of businesses in the office furniture industry since the onset of COVID-19, Sleight added: "This is the second appointment over an office furniture manufacturer we've had since the pandemic. This sector is clearly experiencing significant challenges with the rise in hybrid and home working."
Find out more about the soaring levels of financial distress among UK businesses.
Read about how the struggles of UK companies could drive M&A activity.
Click here to view the UK's latest distressed businesses.
View recent UK administrations.
The company operates as a specialist designer and crafter of bespoke furniture, interior joinery and luxury drinks cabinets for high-end clients around the world.
A specialist manufacturer and distributor of engine parts, sourced from around the world. Circa 375 active customers, gaining repeat, reliable business from 90%.
This is an established designer and producer of homewares and lifestyle gifts. It operates from a leasehold premises and has an established loyal customer base.
Landscaping firm set to pass £20m turnover as it unveils latest acquisition | BUSINESS SALE
UK Landscapes, a private equity-backed landscaping firm base...
Steel group acquires majority of counterpart’s assets from administrators | ADMINISTRATION
Barrett Steel has completed the acquisition of the majority ...
Video surveillance firm sold out of administration | ADMINISTRATION
Video surveillance provider Cloudview has been sold out of a...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.