BLB advisory secures rescue deal for furniture firm

Restructuring and insolvency firm, BLB Advisory, has secured a rescue deal for All Sofas Limited based in Stratford-upon-Avon.

It is reported that the pre-pack administration, which was undertaken by Brett Barton at BLB, has safeguarded 19 jobs following the restructuring and will see that the company’s director, Anna Lundgren, continues to lead the business. 

Though the company’s restructuring means the company is trading as normal, it did change its name to Fina Furniture Limited following the pre-pack administration.

The furniture store’s rescue follows a combination of the pandemic and a 160% rise in raw material costs over the past year, which have pushed the business into financial difficulty.  

Fina Furniture, which was initially formed in 2010 by Lundgren and her husband, handcrafts upholstered furniture at its Stratford-based factory for private landlords, interior designers, hospitality and the healthcare sector. 

Lundgren said: “Over the past year we have seen the price that we pay for wood from Europe soar from £12.75 to £32, which is one example of the challenge that we have been facing among other higher costs such as rising energy bills, not to mention the consumer impact of the cost-of-living crisis.

“We were in a position where we could not keep passing on the price increases to our customers, so after seeking professional advice we have undergone a pre-pack administration, which will enable us to continue to operate and safeguards the jobs of our loyal employees.”

She added: “We are now in a position where we are mapping out a slow and steady plan for growth over the coming years, as we aim to build on last year’s turnover of £1.3m.”

Barton said: “All Sofas Limited, now known as Fina Furniture Limited, has a track record of being a viable business, but like so many companies, they are facing multiple rising costs amid a cost-of-living crisis, and are in need of some support.

“This pre-pack administration has struck the right balance between enabling the business to continue trading without any operational disruption to employees, customers and suppliers, whilst providing the best possible outcome for creditors.”

He added: “It’s a good example of how seeking professional advice early can be the difference between survival, safeguarding many jobs, and a business going completely under.”