Nestware Holdings has taken a substantial financial hit following the closure of its mid-upmarket flooring retailer, The Floor Room, earlier this summer. The company is owed £10.8 million, representing the bulk of a £13.1 million deficit faced by creditors. This loss is part of the aftermath of restructuring efforts led by PwC, which stepped in as advisors in August.
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Among the creditors are approximately 836 customers who had paid around £2 million in deposits. These amounts are expected to be reimbursed either by card providers or by John Lewis, the department store chain where The Floor Room operated most of its branches. Out of the 35 The Floor Room locations, 34 were concessions within John Lewis stores, while its only standalone branch was leased from its former sister company, Carpetright.
The Floor Room's downfall is closely linked to the collapse of Carpetright, with which it shared critical infrastructure such as distribution and back-office functions. After Carpetright went into administration, The Floor Room struggled to establish its own distribution network, resulting in a significant funding shortfall and operational difficulties that ultimately led to its closure.
Efforts to sell the brand and intellectual property have so far been unsuccessful. PwC plans to auction off stock valued at over £1 million, though the proceeds are expected to be minimal, possibly fetching as little as £40,000. Additionally, 197 employees have been made redundant, and many suppliers are facing significant financial losses.
Source: www.thefurnishingreport.com