Sofa company backed by DFS founder enters administration

A sofa company backed by Lord Kirkham, the founder of retailer DFS, has called in administrators.

Toby Scott Underwood and Peter David Dickens of PwC have been appointed as joint administrators of Fabb Sofas, which has a store in Preston.

In total, nine stores have closed and 185 staff have been made redundant.

Despite achieving “significant revenues in such a short period,” administrators said, the business remained reliant on external funding to support trading losses and could not continue to meet payments as they fell due without it.

A statement said: “Given the cash flow position, the management team undertook a sales process to find a purchaser who could provide the funding required to continue to deliver the business plan and take the company forward.

“Unfortunately, it was not possible to achieve a sale and as such the directors had no option but to appoint administrators to protect the creditors of the company.”