Top 10 stories of 2015: 3 Manufacturer collapses after owner charged over human trafficking
DEWSBURY bed manufacturer Kozee Sleep Beds has ceased trading and its 180 staff put on notice of potential redundancy after the company collapsed and administrators were appointed.
Jonny Marston and Howard Smith of KPMG’s restructuring practice were appointed yesterday and all staff were sent home.
It comes six months after owner Mohammed Rafiq was charged with alleged human trafficking offences following an investigation by West Yorkshire Police under Operation Tavernhouse. Mr Rafiq is due in court in October to face charges of conspiracy to arrange or facilitate travel within the UK for exploitation.
Last month, Mr Rafiq resigned as director and secretary of Kozee Sleep Beds.
Although the company had been profitable – its last published accounts, for the year to December 2013, showed a pre-tax profit of £376,000 on £18m turnover – it is understood it suffered in the wake of the police investigation as retailers John Lewis and Next terminated contracts.
Joint administrator Mr Marston said: “Our first priority upon appointment is to assess the company’s financial position and operations with a view to informing our next steps in fulfilling our statutory duties, trying to secure continued employment wherever possible and maximising the realisations available to creditors.”
The administrators have also been appointed to the company’s subsidiaries, Restus Bedsand Hick Lane Bedding, and a property investment company within the group, Hick Lane Properties.
