A North East bed and mattress retailer has entered administration, with unsecured creditors owed close to £200,000 following the collapse of parent company Cav Sleep Limited.
Paul Kings and Lynn Marshall of KRE (North) Limited were appointed joint administrators on 20 January 2026 for the business, Slzzp. According to documents filed with Companies House, the retailer struggled with declining profitability in the years following the COVID-19 pandemic, as reduced in-store shopping and growing online competition placed increasing pressure on the business.
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The company reportedly relied heavily on walk-in customers, but footfall continued to weaken amid the ongoing cost-of-living crisis. Rising utility bills, staff costs and missed rental payments further strained finances across its stores in Sunderland, Westerhope and Newcastle.
Financial accounts for the year ending 30 September 2024 showed losses widening to £30,000, compared with £23,000 the previous year. Directors attempted to continue trading into 2026 in the hope that the post-Christmas sales period would improve cashflow, historically one of the retailer's stronger trading periods.
However, administrators stated that by the second week of January only around a dozen customer orders had been placed, leaving the company unable to make significant creditor payments. Trading ceased on 12 January 2026.
At the time of administration, the business held approximately £9,000 in cash and stock valued at £32,000, although the stock is expected to realise around £15,000. Unsecured creditors are owed approximately £190,000, including trade creditors, redundancy claims and customer claims, with an estimated shortfall of £166,000 expected.
Source: www.bigfurnituregroup.com
