Furniture manufacturer Craftwood Interiors was sold in a pre-pack deal after entering administration.

Nicholas Cusack and Kirren Keegan, both of Bailey Ahmad Ltd T/A BABR, were appointed as joint administrators of Craftwood Interiors Limited on 8 August 2025.

The company operated as a designer, manufacturer, and installer of banqueting seating across the commercial, hospitality, and residential sectors. It employed 27 staff and traded from its premises in Ringwood.

In the build up to its appointment, the company faced continued pressures following the pandemic, with supply chain costs rising by around 15%, further impacting margins and working capital.

In addition, several customers had ceased trading, leaving outstanding debts unpaid and exacerbating cash flow difficulties.

A further issue had arisen when an internal review revealed that an employee had misappropriated approximately £75,000 of company funds for personal use. The individual had been dismissed immediately, but the funds had not been recovered at the time of reporting.

Following a period of review, it was decided that administration was the appropriate route. Upon appointment, a pre-packaged sale of the company’s business and assets was concluded on 8 August 2025 to a connected purchaser, Craftwood Interiors UK Limited, which was incorporated on 10 June 2025., for a total consideration of £140,000.

The sale was broken down into three parts, including £47,000 paid on completion on 8 August 2025, with a further £46,500 on or before 20 December 2025; and finally, a payment of £46,500 on or before 20 May 2026. All employees were transferred to the new company.

As for creditors, preferential claims saw the HMRC owed £473,000, while unsecured creditor claims stood at £460,000, which included £51,000 owed to banks. It is expected that creditors will suffer a shortfall of around £794,000.