Johnson & Johnson saviour Zutux collapses

ZUTUX, the business that took on struggling Manchester furniture maker Johnson & Johnson last year, has fallen into administration.

The business was set up in January 2010 by former Expansys chief executive Roger Butterworth and Kevin Charles.

It acquired Johnson & Johnson from administrators in February 2011 and attracted a private equity investment of nearly £1m a year later from The North West Fund for Development Capital, managed by YFM Equity Partners.

The company made bespoke fitted kitchen and bedroom furniture, as well as freestanding items like book shelves, desks and storage units. It employed 45 staff most of whom have lost their jobs.

Administrators from the Manchester office of accountancy firm Duff & Phelps said it was a victim of the recession.

Joint administrator Philip Duffy said: “Discretionary spending has suffered as a result of the ongoing economic troubles and regrettably the company was unable to sustain its overheads from the turnover the business generated over recent months.” 

Although staff have been cut the administrators have not ruled out a sale of the business as a going concern.