Trade Style Cabinets falls foul of recession

Glasgow’s Trade Style Cabinets has fallen in receivership with the loss of 50 of its 80 employees.

The recession has hit the furniture business hard as a result of the downturn in the housing market and the recession in general.

The firm’s receivers are KPMG’s Blair Nimmo and Tony Friar, who will be doing their best to identify the company’s principal assets.

Nimmo stated that the firm fell foul of cash-flow pressures that came about as a result of the housebuilding slowdown over the past 18 months. He continued, "This led to trading losses being sustained during 2009 and cash-flow pressures, which were exacerbated when its associated company, Torwood Timber Systems, was placed into administration on 25 March."

Torwood is a kit-house maker and was hit by the lack of credit during the downturn. Nimmo and Friar also acted as administrators for Torwood, and were forced to make 16 of the 34 staff redundant. The remaining staff are working for KPMG in trying to sell off the firm’s assets.

Trade Style was founded in 1992 and provided goods to housebuilders and retailers under the brands English Rose and Wrighton.

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