Between October 2025 and January 2026, 31 UK furniture manufacturers, retailers, and wholesalers entered liquidation or administration, leaving creditors with an expected combined shortfall of approximately £19 million. Among the affected businesses, Indigo Furnishings, trading as Living Space, faced a shortfall of £1.3 million, with unsecured creditors owed £962,000, including £121,000 to 36 consumer claims, while HMRC was owed £110,000.
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Abbey Tile Supplies experienced a shortfall of £585,000, with £378,000 owed to directors and £59,000 to staff. Waterline Limited reported the largest deficit, with a shortfall of £2.8 million, a secured debt of £5.4 million owed to its parent company, and unsecured creditor claims totalling £3.4 million, which included nearly £1 million owed to staff. Fired Earth Limited, another notable case, faced a shortfall of £5.5 million, with substantial amounts owed to both employees and consumers.
Other companies, including HT Furniture, Premier Commercial Kitchens, and OE Products, experienced shortfalls ranging from £17,000 to £835,000, reflecting widespread financial strain across the sector. Employees frequently held preferential claims, which were only partially repaid from realised assets, while HMRC consistently appeared as a creditor with amounts owed ranging from a few thousand to several hundred thousand pounds. Unsecured creditors, including banks, staff, consumers, and landlords, bore the brunt of the financial losses. The pattern of insolvencies underscores the ongoing challenges faced by the UK furniture industry, highlighting high operational costs, competitive pressures, and reduced consumer spending, which have collectively contributed to the vulnerability of both businesses and their creditors.
Source: www.bigfurnituregroup.com
