An interior design and furniture specialist in London, has entered administration with debts exceeding "£700,000". Paul Stanley and Mark Weekes of Begbies Traynor (Central) LLP were appointed as joint administrators on 30 December 2024.
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Hart Miller Design, had struggled with ongoing losses since the Covid pandemic, as sales and project pipelines failed to recover to pre-2020 levels. It had taken a CBILS loan during the pandemic, repaying most of the amount, which further impacted cash flow. Rising costs, home working trends, and staff issues at its London showroom also contributed to financial difficulties.
In an attempt to stabilise the business, Hart Miller Design secured a partnership with Bisley in February 2024. Bisley provided an "interest-free loan of £200,000" and committed to generating sales through its own channels. However, the expected sales did not materialise, and Bisley later withdrew all commitments to the joint venture.
A report stated that 'it was the reluctance of Bisley to provide support or even commit to any sales which led to the decision to cease trading'.
Upon administration, secured creditor CIOSIF was owed "£172,000", while preferential creditors, including HMRC and employee arrears, were owed "£23,000 and £15,000" respectively. Unsecured creditors faced a combined shortfall of "£544,000", including "£200,000" owed to Bisley and "£123,000" related to the company's showroom lease.
The total expected creditor shortfall stands at "£754,000".
Source: www.bigfurnituregroup.com