150 made redundant at Dudley office furniture firm

150 staff at the Sven Christiansen factory on the Pensnett Estate in Kingswinford have been made redundant.

The office furniture firm has said the pandemic created debt that had become too difficult for them to manage.

Consultants had been brought in to advise on a potential sale, but the last interested party had withdrawn, resulting in no way forward.

Managing director William O’Brien said: “Our problem was not lack of business, but the huge build-up of debt due to Covid.”

“While we were shut, or working at much-reduced capacity, our rent, rates and many other fixed expenses kept racking up, with no or much-reduced income.”

In his letter, O’Brien said: “I am desperately sorry for the disruption and lost business that our closure will cause many of our customers. I apologise most sincerely for this.

“Words cannot express how sad I am at having to close the business after some 47 years of trading, and my heart goes out to all our loyal staff, many with very long service who face the shock, disruption and financial insecurity of sudden redundancy.”

All remaining furniture will be sold including property, brand names and designs, alongside machinery and equipment being likely to be sold at auction.

Its last financial results for the year to October 31, 2020, saw a drop in annual turnover from £11.9 million to £9.9m with its pre-tax loss increasing from £183,500 to £682,200.