Upholstered furniture manufacturer Ashley Manor owed creditors almost £13m ahead of entering administration.
Colin Wilson and Trevor Binyon, both of Opus Restructuring LLP, were appointed as joint administrators of Ashley Manor Upholstery Limited on 16 September 2025. Opus was also appointed as administrators of sister company Alexander & James Sofas, a British-designed import business, both of which were owned by TCM Living Group.
Detailed in newly filed documents on Companies House, Ashley Manor cited a number of “severe challenges” from 2022 including market contraction, cost inflation, retail partner difficulties, competition and operational disruptions.
The report stated each point below:
Market Contraction: “The UK furniture retail sector experienced sharp decline due to elevated inflation, rising interest rates, and deteriorating consumer confidence. Discretionary spending on premium home furnishings fell significantly as households reduced non-essential expenditure. The cost-of-living crisis disproportionately affected the mid-to-premium market segment where the Company operated.”
Cost Inflation: “Raw material costs escalated substantially, with significant increases in timber, upholstery foam, fabrics, and metal components. Energy costs for UK manufacturing operations rose dramatically, while labour costs increased through inflationary pressures and regulatory changes. These increases severely compressed profit margins, as competitive pressures prevented full cost recovery through pricing adjustments.”
Retail Partner Difficulties: “Several key retail customers experienced their own financial difficulties, resulting in reduced order volumes, requests for extended payment terms, and in certain cases, bad debt exposure. The closure or Administration of multiple independent furniture retailers further reduced available distribution channels and created immediate working capital pressures.”
Competitive Displacement: “The premium furniture market faced intensifying competition from lower-cost imports and direct-to-consumer online retailers operating with minimal overhead. Additionally, larger volume manufacturers with greater economies of scale could absorb cost increases more effectively, placing pressure on the Company’s market position.”
Operational Challenges: “Supply chain disruptions continued to create inefficiencies, with component delays necessitating increased stockholding and working capital investment. The Company’s UK manufacturing base, while a brand strength, carried higher fixed costs than overseas alternatives, limiting operational flexibility during the downturn.”
Despite these ongoing challenges, the company implemented various measures to stabilise the business, including workforce reductions, operational efficiency improvements, supplier term renegotiations, and product range rationalisation focusing on higher-margin items.
Attempts were made to diversify the customer base and explore alternative distribution channels, including limited direct-to-consumer initiatives. However, the combination of declining revenues, compressed margins, and inadequate working capital proved insurmountable.
Efforts to secure additional funding or identify strategic partners were unsuccessful given the challenging market conditions and uncertain recovery timeline.
Administrators had hoped to secure a pre-pack deal ahead of appointment with marketing undertaken during the period of 18 August 2025 to 4 September 2025. Administrators were satisfied that this length of marketing would have achieved the best available outcome for creditors in all the circumstances; many expressions of interest were received, which subsequently led to formal offers.
The pre-packaged Administration would have also rescued approximately 140 jobs, via a transfer of staff under TUPE. However, despite best efforts, no offers to purchase the business and assets as a going concern were received (save for one which was subsequently rescinded and, in any event, would not have borne the best outcome for creditors).
Opus were then officially appointed as administrators with the business, alongside Alexander & James, ceasing to trading with immediate effect.
At the time of appointment, Andy Kennaugh, CEO of TCM Living Group, stated: “This has been an extremely difficult decision and one we deeply regret having to make. Despite our intensive efforts over recent weeks and the support we’ve received, we have exhausted all viable options for securing new ownership that would preserve these businesses.
“Both Ashley Manor and Alexander & James have been well-respected brands in the UK furniture industry, and we are committed to handling this process with dignity whilst ensuring all stakeholders receive the support they need.”
Post-appointment, administrators revealed that, on the afternoon of 27 September 2025, the company’s factory premises was subject to a break-in. CCTV footage subsequently reviewed confirmed that a number of unidentified individuals, wearing balaclavas, forcibly gained entry to the site.
Upon further review, none of the company’s property, stock, or equipment appears to have been removed from the premises. The break-in was formally reported to the local police, and a crime reference number has since been issued.
As for creditors, preferential claims totalled £12.8m, which included Bangkok Bank (owed £12.5m) and the HMRC (owed £325,000), with around £4.9m expected to be realised from company assets. Unsecured claims stood at £1.6m. It is expected that creditors will suffer a shortfall of £9.6m.
Colin Wilson, Managing Partner at Opus, previously stated: “The current economic climate is particularly challenging for all businesses in the furniture market. The cost-of-living pressures have had a direct impact on recent sales volumes, due to the tight squeeze on discretionary spending for all consumers. It is unfortunate that a buyer could not be secured in this instance and we now enter the process of realising the company’s assets for the benefit of creditors.”
