Mattress recycling company Green Sleep was sold in a pre-pack deal after being placed into administration.
Molly Monks, of Parker Walsh Corporate Recovery Limited, was appointed as administrator of Green Sleep Ltd on 26 September 2025.
In the build up to its collapse, the company faced aggressive competitor pressure, financial strain, ill health of its director and tough trading conditions.
Detailed in the administrators report, competitor pressure started back in 2023 after a rival, supported by the largest company in Europe, acquired a nearby competitor. The rival sought to undercut the company by slashing prices, enticing staff to transfer their employment, and pressuring key customers to move their business.
By 2024, the company changed its name from envirotex products LIMITED to Green Sleep Ltd in an attempt to rebrand the business. However, demand in the industry began to weaken, with one of the company’s major product lines drying up in the second half of the year, creating operational and space management issues.
The situation worsened in early 2025 when the company’s two largest customers were lost almost simultaneously: one through a tender process undercut by the competitor, and the other due to a contractual disagreement. At the same time, a recently acquired 7.5 tonne vehicle purchased for £10,000 required £9,300 of repairs and remained out of service for 14 weeks, severely affecting the Company’s ability to collect mattresses and significantly reducing weekly turnover.
To sustain operations during periods of financial strain, the company obtained loans and financing facilities. One key creditor, a utility provider, imposed a repayment plan of approximately £7,500 per month over 12 months, with threats of immediate disconnection of utilities in the event of default.
In addition, the Director personally injected £20,000 from his pension savings to support working capital. Despite these efforts, the simultaneous loss of key customers, aggressive competition, reduced industry demand, ongoing disputes with the company’s accountant over VAT, and vehicle downtime placed the business under insurmountable pressure.
“The combination of adverse trading conditions, heightened competition, ill health of the Director, and the immediate withdrawal of its two largest revenue sources in early 2025 ultimately led to the company’s collapse, as cashflow demands could not be met and creditor pressure intensified,” administrators said.
Upon appointment, a pre-pack sale was subsequently agreed to Rematt – owned by a connected party, which acquired all assets, including goodwill, intellectual property, plant and equipment, and office assets, as a going concern. The sale consideration was £10,000, payable in six equal monthly instalments.
The sale also included the transfer of employees under TUPE, which safeguards employees’ rights during a transfer of business, thereby preserving jobs and minimising redundancy liabilities. As for creditors, preferential creditor, the HMRC is owed £58,000, while unsecured creditors are owed £602,000, including £50,000 owed to banks. It is expected that creditors will suffer a shortfall of £651,000.
