Furniture logistics firm Humber Services experienced creditor pressure and a major customer dispute in the build up to its collapse.

Andrew Watling and Simon Campbell, both from business advisory firm Quantuma, were appointed as joint administrators of Humber Services Ltd on 1 August 2025.

The company ceased trading several months before the administration and, at the time of the appointment, did not employ any staff.

In the build up to its collapse, the company, which specialises in furniture deliveries, faced cashflow difficulties following a dispute with a major customer.

Although haulage and storage were the company’s primary operations, it later began supplying complete bed components on behalf of one client. Customer orders for beds were placed through the client and fulfilled by the company.

However, a dispute arose as a result of customer complaints, resulting in significant issues and customer dissatisfaction. Many customers refused to pay the client, and the company decided to cease providing this service for this client.

As a result, the client issued a substantial counterclaim against the company, estimated at c.£1m. Furthermore, the company had accrued a significant liability to the HMRC, owing around £335,000.

On 16 July 2025, a creditor presented a winding up petition against the company and as a result the directors sought their own insolvency advice.

With regards to creditors, preferential creditor, the HMRC is owed £202,000, while unsecured creditor claims stood at £1.2m, with a further £130,000 owed to the HMRC and £1.1m owed to the trade, which includes Simba Sleep – owed £702,000. It is expected that creditors will suffer a shortfall of £1.7m.

Quantuma managing director and joint administrator Andrew Watling said at the time of appointment: “It is extremely regrettable that Humber Services was forced to cease trading, due to a series of challenging circumstances.”