160 jobs at risk as manufacturer enters administration

The 160-strong workforce at Dudley manufacturer Ultra Furniture face an uncertain future after the company was forced to appoint administrators.

The closure of Tesco Direct, which shuts next month, had a direct impact on the business as it accounted for more than 70% of Ultra’s sales.

It is the second time in two years that the company has entered administration, with the company being bought for £100,000 in a pre-pack deal in April 2016.

The business has supplied upholstery retailers and high-street brands for 30 years from its Kingswinford site.

Duff & Phelps’ Steven Muncaster, who has been appointed administrator, said: “The Directors of the business are clear that at this stage that the business as it currently stands cannot continue to trade following the loss of such a major customer.

“While we are continuing to market the business with the aim of finding a buyer, we have to stress that this is a hugely challenging market undergoing consolidation and cost pressures.”

Separately, Fabb Sofas has followed Multiyork, Oak Furniture and Feather & Black into administration as the furniture sector continues to struggle.

PwC’s Toby Underwood and Peter Dickens were appointed as joint administrators of Fabb today. The company, which was backed by DFS founder Lord Kirkham, had nine stores but had remained reliant on external funding to support trading losses.

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