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PRIVACY
Retail & Consumer

Sofa Workshop collapses into administration with loss of 77 jobs

All existing orders will be fulfilled , say appointed administrators at PwC

Sofa Workshop has gone into administration with the loss of 77 jobs and closure of its High Street stores(Image: NottinghamshireLive)

High Street retailer Sofa Workshop has gone into administration with the loss of 77 jobs.

Supply chain and transport costs had contributed to trading losses and outweighed 'significant revenues', said appointed administrators Toby Banfield, David Baxendale and Zelf Hussain of PwC.

The company had 16 stores across the º£½ÇÊÓÆµ and operated online.

A advises that the company is no longer taking orders.

But existing orders will be fulfilled. Immediately following the administration appointment, the existing customer order book was sold to Timothy Oulton United Kingdom Ltd, part of the Halo Group, which is the owner of The Sofa Workshop Limited.

No disruption to the manufacture of customer orders is expected and it is the intention of Timothy Oulton to fulfil all existing customer orders on the terms which have previously been agreed, said the administrators.

In a statement, the administrators said that Covid-related supply chain disruption and significant increases in transportation costs on importing goods from Asia into the º£½ÇÊÓÆµ over the last year meant that the business has been unable to meet payments as they fall due and has remained reliant on the support of its shareholder.

It read: "Given the cash flow position of the business, potential sale options were explored with the aim of a purchaser providing the funding required to continue to deliver the business plan and take the Company forward. However, no viable offers were received."