Creditors of 46 UK furnishing businesses entering liquidation or administration are expected to face a combined shortfall of £49.4m, according to the latest Insolvency Digest. The figures reflect a range of preferential and unsecured claims across retailers, manufacturers, wholesalers and service providers in the sector.
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Among the notable cases, Coexistence Limited saw unsecured creditors owed £975,000 with a projected shortfall of £390,000, while Sleep 8 Intrinsic Limited faced unsecured claims of £17.1m and an anticipated shortfall of £16.9m. Craftwood Interiors Limited underwent a pre-packaged sale, yet unsecured creditors are still expected to lose £794,000. Furniture retailer Hamsard 3462 Limited has unsecured claims of £1.2m, with an overall shortfall of £13m largely linked to a £10.3m floating charge debt.
Several businesses, including Norfolk Beds Limited, Switched On Group Limited and Wright Choice Carpets Limited, reported smaller creditor shortfalls ranging from £38,000 to over £400,000. Across the sector, preferential creditors such as HMRC and employees are often partially repaid from realised assets, but unsecured creditors consistently face significant losses.
The figures underline mounting financial pressures within the UK furniture industry and highlight the vulnerability of creditors when companies fail under trading, cashflow and market challenges.
Source: www.bigfurnituregroup.com
