A soft furnishings company has entered administration after being unable to secure a buyer amid challenging economic conditions. The business faced significant financial pressures due to rising costs and decreased consumer spending.
Home Curtains UK Limited, based in Nottinghamshire, entered administration on 17 January 2025, with Dean Nelson and Nicholas Osborn from PKF Smith Cooper appointed as joint administrators. The company, founded in 1986, specialises in curtains, accessories, lace, and custom-made voiles, serving customers across the UK and Europe.
Before entering administration, the business explored potential sale opportunities, receiving three offers. However, none of these proposals were viable, as they did not cover the business as a going concern or include the company's employees. One offer from a connected party was deemed insufficient, while the other two fell through due to overlapping stock issues.
Following the appointment of administrators, it was agreed that the company would continue trading under supervision while further attempts were made to market and sell its assets. To date, there has been no sale of assets to connected parties.
The company's financial struggles are attributed to escalating raw material, shipping, and energy costs, as well as inflation and reduced consumer expenditure. HMRC, the preferential creditor, is owed £272,000, which is expected to be recovered from realised assets valued at £969,000. These assets include £481,000 in cash and £370,000 in book debts. Unsecured creditors are owed £772,000, including £340,000 in employee claims and a £99,000 Funding Circle loan, with an anticipated shortfall of £90,000.
A spokesperson for the company described the decision to enter administration as "incredibly difficult" and expressed gratitude to long-serving employees and loyal customers. Dean Nelson from PKF Smith Cooper noted that the company had faced "significant challenges" due to rising costs and an unfavourable economic environment.
Source: www.bigfurnituregroup.com