A home and furniture retail group has ceased trading after succumbing to financial pressure and declining sales. The business, which employed 11 staff, formally entered administration in March 2025, resulting in the loss of all jobs.
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From line 4 onwards, Luxury Home Design Group Ltd, the parent company of brands including The Rug Seller, Shabby, and Luxe Tapi, appointed David Riley and Mark Blackman as Joint Administrators. According to documents filed at Companies House, the group owed £1.6m to creditors at the time of its collapse.
The company experienced a significant drop in turnover during 2024, which impacted cash flow. Despite securing short-term agreements with some suppliers and receiving support from both its bank and HMRC, the business was unable to recover. Hopes of a turnaround during the peak trading season failed to materialise.
Towards the end of 2024, trading performance showed "no signs of improvement", and the group was approaching a quieter period in the annual retail cycle. Mounting creditor pressure and the threat of enforcement action posed further risk to the value of remaining assets. A strategic review led to the conclusion that the company could no longer continue operating.
Upon entering administration, all trading ceased and the process of asset disposal began. Secured creditor HSBC Bank is owed £327,000, while HMRC is listed as a preferential creditor with a claim of £314,000. Unsecured creditors are owed a total of £980,000, including £72,000 in employee claims, and are expected to face a full shortfall.
The report underscores the challenges of sustaining operations amid weak trading conditions, creditor pressure, and seasonal market fluctuations in a competitive retail sector.
Source: www.bigfurnituregroup.com