A UK-based furniture and accessories importer and wholesaler has been sold for just £58,000 following its collapse into administration, despite previously being valued at £143,000.
The business, Geko Products, faced a combination of declining sales, cash flow issues, supplier and landlord disputes, and was ultimately pushed into administration after a creditor secured a "judgement in default" due to an unresolved legal claim.
On 3 March 2025, joint administrators Colin Wilson and Allister Manson of Opus Restructuring LLP were appointed and executed a pre-pack sale of the company's assets to Teal International on the same day. The report noted that the lower-than-expected sale price was due to limited interest in the business.
Geko Products, the company in question, owed a total of £193,000 to creditors at the time of administration. HMRC, the preferential creditor, is owed £21,000, while unsecured creditors are due £172,000. A shortfall of around £124,000 is expected.
The administrators stated that the sale ensured "continuity for customers and suppliers," safeguarded one job that would have otherwise been lost, and maintained operations at the company's trading premises. They added: 'This outcome represents the best possible result in challenging circumstances, safeguarding value for creditors and ensuring continuity for stakeholders.'
Source: www.bigfurnituregroup.com