A UK-based textiles wholesaler has entered administration for the second time, underlining continued financial strain across the home furnishings supply chain.
The Blackburn-based distributor, SG UK International, which specialises in linens and home textiles, was placed into administration on 30 January 2026. The business has since been sold in a pre-pack deal to Pacific Textiles Limited, a newly formed company under common ownership, for £130,000.
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SG UK International was established in 2022 after acquiring assets from the collapsed Sadaqat Global. While the company initially reported strong turnover and profitability, a sustained decline in sales combined with high overheads led to mounting cashflow pressures.
By late 2025, the business required additional funding to continue trading but was unable to secure further financial support. Limited working capital and insufficient assets prevented access to new lending, ultimately forcing administration.
The deal leaves significant liabilities, with unsecured creditors owed £619,000 and total shortfalls expected to reach £2.2m.
For the furniture and interiors sector, the collapse highlights growing vulnerability among suppliers, particularly in textiles, where fluctuating demand and rising costs continue to challenge operational stability.
Source: www.bigfurnituregroup.com
