A West London-based upholstery manufacturer and retailer, is facing a winding-up petition as financial pressures mount. The petition was filed late last week by William Antony Batty, an insolvency practitioner from Antony Batty & Co, who has been overseeing the company's voluntary arrangement (CVA) since September 2022.
The filing marks a critical point for the company in question, The Sofa & Chair Company, which agreed to a CVA with creditors two years ago in a bid to manage its financial difficulties. Under the CVA terms, The Sofa & Chair Company, which generates an annual turnover of approximately £14 million, committed to making 60 monthly contributions totalling £1.3 million. The CVA also allowed the company to reduce its liabilities by £5 million, primarily related to tax debts.
The Sofa & Chair Company is part of the Larkbury Group and operates as a vertically integrated business, manufacturing and retailing its products. Despite the CVA offering temporary relief, the company's financial issues have persisted, leading to the recent petition.
Source: www.thefurnishingreport.com