Sofa manufacturing group TCM Living has reported a decline in sales following a restructure that saw three of its four major brands enter into liquidation or administration.
According to the latest filed accounts ended 31 December 2024 for TCM Living, the parent company of Alstons – and former parent of Ashley Manor, Alexander & James and AMX Designs, total sales fell 41.5% to £62.1m from £106.2m in 2023.
Pre-tax losses resulted at £26.3m, widening from a loss of £757,000 recorded the previous year.
Stated within its report, the group outlined that AMX Design Limited went into liquidation on 28 May 2025, while Ashley Manor Upholstery Limited and Alexander and James Limited both fell into administration on 15 September 2025. (See more here).
The continuing group therefore consists of Alstons (Upholstery) Limited and Alstons (Cabinets) Limited. These both reported combined sales of £31.2m during the period. Alstons (Upholstery) saw sales decline from £35.9m to £27.4m, with a pre-tax loss of £1.5m, while Alstons (Cabinets) revenues fell from £4.9m to £3.8m, with pre-tax losses at £166,000.
“In December 2025, an agreement in principle was reached with the Company’s bankers relating to the rescheduling of the Group’s debt,” TCM stated. “However, it is contingent on the receipt of a £4m injection of capital from the Group’s parent company which will be used to reduce bank indebtedness.
“The directors have received written confirmation from the Group’s parent company that the £4m capital injection will take place in February 2026. Upon receipt of the capital injection, the Group’s remaining UK bank facilities will be scheduled over an 8-year period with the first payment due to take place in 2027. Should the capital injection not take place, it is unlikely that the Group would be able to continue as a going concern.
“The Group is forecast to make a significant trading loss in the year to 31 December 2025, together with a reduced loss in 31 December 2026, before returning to a profitability in 2027. However, these forecasts assume a significant increase in turnover and improvement in gross margin. This may be difficult to achieve in the current macro-economic environment.”
The group said UK sales, its core market, had decreased to £61.1m from £105.2m, while EU sales rose to £113,000 from £65,000. As for the USA, revenues remained flat at 92,000, while sales in Thailand increased from £269,000 to £358,000. Revenues in China represented £53,000, down from £115,000.
In the UK, two of the group’s major retail clients, ScS and Furniture Village, saw a combined decrease in sales. This was driven by ScS as revenues fell to £10.5m from £30.7m. As for Furniture Village, sales were down to £12.7m from £15.6m. There was also another customer account reported in this set of results, which registered sales of £7.6m. As for the rest of sales, these resulted at £31.2m, down from £47.2m year-on-year.
“During the year, trading conditions were affected by wider global economic factors,” the group added. “The upholstery sector experienced a challenging environment in 2024, with reduced discretionary consumer spending and ongoing pressures on household budgets. These conditions, combined with inflationary impacts on raw materials, manufacturing inputs and logistics, continued to influence demand and place pressure on margins across the industry.
“During 2025, certain subsidiary undertakings entered into liquidation or administration. While these entities represented part of the Group’s operational footprint, their loss has prompted a reassessment of the Group’s structure and future operating model. The Directors have reviewed the Group’s product offering, supply chain arrangements and cost base to ensure that the remaining operations are appropriately aligned to current and expected market conditions.
“The Group’s forward strategy will focus on strengthening core product ranges, enhancing operational efficiency and leveraging key customer relationships to support sustainable performance.”
