A UK bed and mattress retailer has fallen into administration after only half of its four stores were trading profitably and a series of operational and financial challenges proved insurmountable.
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Appointed on 7 August 2025, joint administrators Mark Ranson and Adrian Dante of Opus Restructuring LLP revealed that by 31 May 2025, the retailer, r The Sleep Haven, had accumulated losses of £134,000, despite profitability in two locations. Management believed that breaking even would require significant investment and further store expansion.
The company suffered a major setback with the death of Operations Director John Whitehead, a key figure in the business who worked full-time on a modest salary. With the cost of hiring a replacement expected to be considerably higher, the directors concluded that the company was no longer viable without new funding. When no capital injection materialised, management sought restructuring advice, ultimately leading to the appointment of administrators.
Following the appointment, Opus Restructuring implemented a plan to maximise asset realisations. After a brief trading period, stores began closing in stages, Castleford on 22 August, Broadstone and Oswaldtwistle on 31 August, and Warrington, the final store, on 7 September. Remaining stock and office equipment were transferred to BPI Auctions, and all 13 staff members were made redundant.
Administrators also introduced a protocol to safeguard customer deposits going forward, after discovering that previously all funds had been used within a single trading account. Since 23 July 2025, the company recovered £61,233.95 in deposits, fulfilling £43,497.69 worth of orders, though £17,736.26 remains unfulfilled and will be reconciled for potential refunds.
As for creditors, HMRC is owed £22,000, unsecured creditors £427,000, and 141 consumers a combined £78,000. Additional liabilities include a £27,000 director's loan, £6,500 owed to employees, and £31,000 to Barclays Bank. Creditors are expected to face a shortfall of £421,000.
Established in June 2023, The Sleep Haven expanded quickly and gained a foothold in the bed retail sector before its early demise. Administrator Mark Ranson described the outcome as "a tragedy for a business created with such optimism and which had become well-established so quickly, but failed to survive its start-up phase."
Source: www.bigfurnituregroup.com
