Fri, 10 Nov 2023 | ADMINISTRATION
Ministry of Furniture, a South West Wales-based supplier of workplace and education sector furniture, has closed and is set to be placed into Creditors’ Voluntary Liquidation. The company blamed its collapse on shifting work practices since the COVID-19 pandemic, as well as a squeeze on government spending.
The company, which began trading more than a decade ago following the collapse of Neath’s Remploy Furniture Factory, specialised in contract furniture supply, remanufacturing, interior design and installation, primarily serving clients in the public sector workplace and education sectors.
The firm reportedly traded profitably until 2021, but since then has been adversely impacted by the COVID-19 pandemic and cuts to public sector funding. Efforts by the firm’s directors to turn the business around have ultimately been unsuccessful and the directors are now liaising with restructuring advisory Begbies Traynor Group, with the business to shortly be placed into Creditors' Voluntary Liquidation.
Begbies Traynor’s Cardiff office has said it is working with agents Eddisons Commercial, who will handle a sale of Ministry of Furniture’s assets and brand in an effort to maximise creditor returns. In its accounts for 2021, the company’s fixed assets were valued at close to £350,000 and current assets at £2.4 million, with net assets amounting to just under £328,000.
Huw Powell, partner at Begbies Traynor's Cardiff office, said: "Ministry of Furniture had managed to retain its original social aims while trading profitably between 2012 and 2021.”
"However, in recent years it has experienced a reduction in turnover as the switch to home working prompted a reduction in public sector spending on projects, as well as increased costs. Despite securing additional borrowing and some significant orders for 2024, efforts by the directors to turn the business around have unfortunately proven unsuccessful.”
The Ministry of Furniture directors added: "It is an extremely difficult situation, and we truly wish we had been able to achieve a different outcome for our immensely dedicated team and customers. The reality is that the business could no longer continue, and we were left without any choice but to close.”
Read about another furniture business that collapsed as a result of changing work habits post-COVID
Established in the early 2020s, this company operates as a Tezlom recruitment agency with a 10-year licensing agreement across two territories in South East England. The company specialises in the recruitment of healthcare professionals, including ca...
The company is an established tyre-fitting firm based in the South East. Founded in the early 2010s, the company has built a strong reputation in the local market, offering an extensive range of premium, mid-range, and budget tyres from leading manuf...
Established in 1977 by a small team of expert joiners, this business has upheld its traditional craftsmanship for nearly 5 decades. In that time, it has evolved into a leading UK and Ireland provider of specialist joinery, fire door-sets, and contrac...
12
|
Feb
|
TBG Furniture secures new PE backing from Blandford Capital | BUSINESS SALE
TBG Furniture has secured new private equity backing from Bl...
11
|
Feb
|
Kara Healthcare expands with landmark acquisition | BUSINESS SALE
Kara Healthcare has bought seven care homes as it continues ...
11
|
Feb
|
PE group Endless sells Karnova Food Group to US outfit OSI | BUSINESS SALE
Private equity group Endless has sold Karnova Food Group to ...
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
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
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.