Sofa company backed by DFS founder enters administration

A sofa company backed by Lord Kirkham, the founder of Yorkshire chain DFS, has called in administrators, resulting in 185 job losses.

Fabb Sofas grew rapidly since its launch in 2016, opening nine stores across England and Scotland.

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

Toby Scott Underwood and Peter David Dickens of PwC have been appointed joint administrators.

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.”