A prominent sofa and chair manufacturer based in Long Eaton, East Midlands (UK), has ceased trading, resulting in the loss of all 178 jobs. The business, which had operated since 2010 and supplied high-end products to major brands, collapsed due to prolonged market volatility and falling demand.
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Appointed liquidator of Andrew Paul Furniture Limited, Michael Roome, of Leading confirmed the company's closure and impending asset liquidation.
In its most recent financial accounts to 30 April 2024, turnover dropped to just under £13 million from £14.2 million the previous year. Post-tax profits declined marginally from approximately £604,000 to £600,000. Directors cited the "challenging market conditions" that followed the post-Covid period, adding that "cutbacks in all areas of the business have had to be made".
Efforts to restore profitability included restructuring and relocating manufacturing operations to Meadow Lane in Long Eaton to reduce overheads. However, this failed to reverse declining trade and cash flow pressures.
At the time of collapse, the company held fixed assets valued at around £423,000 and current assets of £2.5 million, with net assets just below £600,000.
The closure highlights ongoing struggles within the UK manufacturing sector amid economic uncertainty and shrinking consumer demand.
Source: www.business-sale.com
