A UK bed and upholstery manufacturer have filed a Notice of Intention (NOI) to appoint administrators.
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The Trowbridge, Wiltshire-based group, Airsprung Group plc and subsidiary Airsprung Furniture Ltd, said significant pressures across the sector had affected trading performance and weakened the company's cashflow position.
Directors stated they are currently working with key stakeholders to explore options aimed at preserving the business. They added that filing the NOI provides the company with breathing space while these discussions continue.
The group manufactures white-label products as well as its own brands, including Airsprung, Gainsborough and Airofreem.
An NOI is commonly used in the UK restructuring process to create a temporary period of creditor protection while rescue options, refinancing or a formal administration process are considered.
The development reflects continued pressure within parts of the UK bedding and furniture manufacturing sector, where businesses have faced rising costs, softer consumer demand and margin compression over recent years.
For suppliers and retailers, Airsprung's position is another reminder of the fragile trading conditions still affecting established manufacturers, particularly those exposed to volume-led private label production and price-sensitive consumer segments.
The outcome of the stakeholder discussions will determine whether the company can secure a rescue plan, sale process or formal restructuring route in the coming weeks.
Source: www.furniturenews.net
