A UK-based furnishing wholesaler has entered administration after failed attempts to secure funding, with creditors now facing an expected shortfall of £2.8m.
© Yulia Sherstiuk | Dreamstime
The business, which traded as Stone the Crows, struggled under the weight of economic pressures following the Covid-19 pandemic, rising operational costs, and weakened turnover. Despite repeated efforts to secure finance, including government-backed CIBILS loans, the company was unable to replace its repaid bank debt, placing it in an unsustainable position.
In March 2023, directors performed a sale and leaseback of the company's main warehouse to inject cash, but this led to increased monthly rent costs and further eroded financial stability. During 2023 and 2024, the directors explored additional funding options, including the attempted sale of a private residence, all of which failed. Turnover in 2024 stood at £1.96m, but HMRC pressure and a breached payment arrangement in late 2024 hastened the company's decline.
Faced with a likely winding-up petition, the directors initiated insolvency proceedings. Administrators were appointed in March 2025 and opted for a short trading period to maximise inventory value. Some stock was sold to Dalman Properties Limited, which has a director in common with the failed business. Three out of 22 employees were made redundant.
Lloyds Bank Commercial Finance, a secured creditor, is owed £88,000 and is expected to be repaid in full. However, preferential employee claims of £6,300 and HMRC's £644,000 debt remain uncertain. Unsecured creditors are owed a further £2.5m, including £250,000 to staff and £1.8m in trade debts.
Administrators concluded that a significant shortfall for creditors was unavoidable, drawing a close to the business's operations after years of mounting financial strain.
Source: www.bigfurnituregroup.com