Pre-pack deal saves 160 jobs at bed manufacturer
A pre-pack administration deal has saved 160 jobs at a bed manufacturing company based in Kingswinford.
Gareth Wilcox and Paul Harding of Opus Restructuring & Insolvency were appointed as administrators of Furmanac last month.
Handcrafting adjustable beds for more than 50 years, Furmanac suffered substantially during the last couple of years with the closing and reopening of its own manufacturing site, and the closure of its customers during successive lockdowns.
This was followed by a consistent increase in the cost of materials, combined with a lack of availability and resource challenges.
These factors combined, finally proved too much for the business, said Opus Birmingham.
Following a review of the finances of the company, the business was rescued through an administration pre-pack deal whereby they were able to save 160 jobs, maintain continuity of supply, achieving a better outcome when compared to a liquidation and closure of the business.
Gareth Wilcox, partner at Opus, said: “If we can find a way to feasibly save a business, we will always look to achieve that outcome. This business has been through some tough times but had previously traded successfully. Once we had independently reviewed the figures, it was clear that this was a business that could be saved, and that this would achieve the best results for all stakeholders.”
Paul Harding, partner at Opus, added: “Combining the current climate, and the last couple of years, we envisage seeing many more businesses in this predicament. Because Furmanac spoke to us when they did, we had time to ensure a sale could be achieved and that the business could continue. We are extremely happy that so many jobs were able to be saved, especially given the personal financial challenges being faced by so many at the moment.”