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Furniture creditors face £21m blow as insolvencies deepen

Creditors of 43 UK furnishing businesses are facing combined losses of over £21m as a wave of insolvencies continues to impact the sector.

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According to the latest Insolvency Digest, a mix of manufacturers, retailers, wholesalers and upholstery firms have entered liquidation or administration since May 2025. Losses range from smaller cases, such as Furniture Hire UK (Southall) Limited with a £42,000 shortfall, to large-scale collapses including B Womack Furniture Ltd, where creditors are expected to lose £3.8m.

Other significant failures include Homes Direct 365 Limited, leaving an estimated £4m shortfall, Kilbridge Limited with £1.4m, Sylvan Works Ltd with £1.2m, and Andrew Paul Furniture Ltd with £2.2m. HMRC, banks, employees, landlords, and thousands of consumers are among those owed money.

Analysts highlight that "preferential creditors" such as HMRC and staff often receive only partial repayment, while "unsecured creditors" are left exposed. The figures reveal widespread financial distress across the furnishing supply chain, from small independents to national operators.

The Digest shows that, despite some recoveries from asset sales, the majority of claims remain unrecovered, deepening concerns over the resilience of the UK furniture market.

Source: www.bigfurnituregroup.com

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