A garden furniture business based in Staffordshire, England, has been sold in a pre-pack administration deal to a connected company following cashflow difficulties. The company, which traded through platforms including Amazon, Etsy, eBay, and its own website, faced financial strain due to Amazon withholding a portion of revenue to cover potential returns.
© Andrei Rahalski | Dreamstime
This, combined with accounting errors and unfiled VAT returns that triggered penalties for Staffordshire Outbuildings, the business in question, led to a critical cashflow shortfall, preventing the business from meeting immediate obligations such as payroll for its 16 employees.
To continue operations temporarily, the director established Staffordshire Outdoor Furniture Limited (SOFL) in August 2025, enabling the company to order stock and meet payroll. However, due to health concerns, the director stepped back, and the business was deemed insolvent by administrators Emma Mifsud and Mark Ranson of Opus Restructuring LLP. Following their appointment on 6 February 2026, the company's business and assets were sold in a pre-pack deal to SOFL for £15,000. SOFL is connected through the director's sons, Kyle and Lloyd Gavaghan, who are also directors and shareholders.
The administration leaves creditors with a significant shortfall. HMRC, as a preferential creditor, is owed £402,000, while unsecured creditors are collectively owed £340,000, including £246,000 to HMRC and £40,000 to the landlord. Overall, the creditors are expected to face a combined shortfall of £664,000. The deal allows the business to continue trading under the connected company while addressing the challenges created by platform trading constraints and internal financial management issues.
Source: www.bigfurnituregroup.com
