The majority of businesses within furniture manufacturer Homeform Group have now entered administration, resulting in 557 redundancies.
The Moben, Dolphin and Kitchens Direct businesses have been closed down by Deloitte administrators with, 453 customers who did not pay their deposits with cards standing to lose a total of £1.5m.
Sun Capital, Homeform’s owner, had already struck a deal to buy the Sharps Bedrooms division, creating a new company Sharps Bedroom Ltd which secures 627 jobs at Sharps’ Bilston factory, as well as 96 showrooms and concessions, plus offices in Camberley.
Deloitte said the sale of Sharps happened shortly after their appointment as administrators, effectively meaning Homeform owner Sun Capital has bought back the business in a “pre-pack administration” deal which is likely to leave the new company without the old debts.
“The business [Homeform] has suffered from the extreme pressures currently hitting retailers of high value items, as customers shy away from big ticket purchases such as kitchens and bathrooms,” said joint administrator Phil Bowers.
He said the absence of funding meant there was no option other than to close the businesses, although the brands are up for sale. Urgent discussions are taking place with stakeholders and interested parties in a bid to sell all or parts of the business.
If you are a timber or panel product supplier which has been affected by the demise of Homeform please contact the TTJ news desk at spowney@ttjonline.com or call 020 8269 7810.
