Jobs saved following manufacturer’s pre-pack administration
A soft furnishings furniture manufacturer is trading under a new name and 19 jobs have been safeguarded following a pre-pack administration.
All Sofas Limited, based in Stratford-upon-Avon, is now trading as Fina Furniture Limited and the company’s director, Anna Lundgren, will continue to lead the business.
The pre-pack administration process was overseen by Brett Barton from restructuring and insolvency firm BLB Advisory.
The business was initially formed in 2010 by Lundgren and her husband where all of the company’s upholstered furniture is handcrafted at its Stratford-based factory for customers such as private landlords and interior designers, through to the hospitality and health care sectors.
After a decade of growth that saw the business generating around 300 orders a week, a combination of the Covid pandemic, followed by a 160% rise in raw material costs over the past year from Europe had pushed the business into financial difficulty.
Lundgren said: “Over the past year we have seen the price that we pay for wood from Europe soar from £12.75 to £32, which is one example of the challenge that we have been facing among other higher costs such as rising energy bills, not to mention the consumer impact of the cost-of-living crisis.
“We were in a position where we could not keep passing on the price increases to our customers, so after seeking professional advice we have undergone a pre-pack administration, which will enable us to continue to operate and safeguards the jobs of our loyal employees.
“We are now in a position where we are mapping out a slow and steady plan for growth over the coming years, as we aim to build on last year’s turnover of £1.3m.”
Barton added: “All Sofas Limited, now known as Fina Furniture Limited, has a track record of being a viable business, but like so many companies, they are facing multiple rising costs amid a cost-of-living crisis, and are in need of some support.
“This pre-pack administration has struck the right balance between enabling the business to continue trading without any operational disruption to employees, customers and suppliers, whilst providing the best possible outcome for creditors.
“It’s a good example of how seeking professional advice early can be the difference between survival, safeguarding many jobs, and a business going completely under.”