A UK-based mattress and bedding company is working on a financial reorganisation to secure its future. The financial difficulties intensified significantly in 2024, culminating in a restructuring deal last month at bed company Mammoth Sit and Sleep.
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According to a report from Opus Restructuring, appointed to oversee the insolvency in October, the company's losses surged nearly five-fold. A deficit of £101,497 in 2023 ballooned to a net loss of £462,848 for the first nine months of 2024. This left the company with total net liabilities of £952,053.
In the prepack arrangement, Blue Dragon Assets, an entity connected to Mammoth Sit and Sleep's founder John Tuton, acquired the business's licence and other assets for £75,000.
Mammoth subcontracted its production to external manufacturers, including Dreamland Beds Midlands (£133,000 owed), Airsprung (£45,000 owed), and foam converter Aerofoam (£115,000 owed). Altogether, creditors face a projected shortfall of £1.17 million. The extent of their financial recovery will depend on whether they possess secured guarantees, such as trade credit insurance or letters of credit.
Source: www.thefurnishingreport.com