ReSolve completes sale of Cuckooland Limited Assets

ReSolve has announced that it has completed the sale of certain assets of Cuckooland Limited, to Flair Furniture.

Cuckooland.com was launched in 2016 as a unique, customer-focussed online store selling a range of aspirational products and gifts for the home and garden.

The impact of the COVID-19 pandemic and associated lockdowns saw a significant rise in sales, with turnover of the business doubling in the year to 31 March 2021.

However, the following year, as Government restrictions began to ease, consumer demand started to cool, which together with increasing inflationary pressures, resulted in significant challenges for the business, and led to reduced sales and lower profit margins.

Compounding this, certain suppliers were selling directly to consumers and the oversupply of goods led to prices being reduced significantly across the retail sector.

ReSolve was engaged by the company in November 2023 to advise on rescue options alongside running an AMA process to explore potential interest in the business.

Positive discussions were held with several interested parties, which resulted in an offer that would have seen the company return to solvency.

Unfortunately, this party could not progress for reasons not connected with Cuckooland, and in the absence of any other significant offers, it was determined that the company should be placed into insolvent liquidation.

During the notice period, Hilco and ReSolve generated five new offers to acquire certain assets.

Following their appointment as joint liquidators on 13 February 2024, ReSolve partners Simon Jagger and Ben Woodthorpe secured a sale of the Company’s intellectual property and stock.

Jagger said: “We are pleased to have completed a sale of this well-respected brand and its stock via a competitive process that saw us maximise value for the creditors of Cuckooland. We wish Flair Furniture all the best going forward.”