A once-profitable carpet and flooring retailer has ceased trading and entered administration after mounting financial pressure, largely due to significant rent increases.
The business had shown strong performance for several years, reporting a turnover of £448,000 and a profit of £51,000 in the year ending June 2022. Although sales slightly improved the following year, reaching £451,000, the company recorded a loss of £24,000. By June 2024, sales had dropped to £373,000, with losses widening to £42,000.
M6 Carpets Haydock Limited, based in Pye Close, Haydock, suffered a critical blow following a change in landlord. Multiple rent reviews led to substantial price hikes, with a further increase in December 2024 described as "unsustainable". The financial strain prompted the company to seek advice from Leonard Curtis.
Following a review, joint administrators Mike Dillon and Hilary Pascoe of Leonard Curtis were appointed on 28 January 2025. They concluded the business could no longer meet its financial obligations, including rent, and anticipated the landlord would take legal action.
Upon administration, two staff members were made redundant and operations ceased. The company owed a total of £163,000, including £4,000 to HMRC and £159,000 to unsecured creditors. This included £49,000 owed to employees, £13,000 to Santander Bank, and £75,000 to its landlord, Fisher German LLP. Assets are expected to realise £49,000, leaving creditors with an estimated shortfall of £115,000.
Source: www.bigfurnituregroup.com