Furniture manufacturer Sylvawood Furniture suffered from tough economic conditions in the build up to its collapse, while its CVA hindered new business prospects.
David Kemp and Richard Hunt, both of SFP Restructuring Limited, were appointed as joint administrators of Sylvawood Furniture Limited on 17 October 2023.
The company struggled to pay its liabilities due in the build up to its administration and was unable to trade as a going concern. Prior to this period, an impacting factor was its ongoing CVA since 2018, which had a “negative influence on the company’s ability to attract new business”.
Earlier this year, the company attempted to improve its fortunes but continued to struggle due to the economic climate. It also tried to vary the terms of the CVA before conceding that an amended proposal was “too onerous and could have a negative impact” on its ability to trade.
Upon entering administration, the business and assets were sold for a sum of £70,000 to a connected party, the same director of Arboretum Limited, which is payable over an 11-month period. The sale was completed on 25 October 2023.
A breakdown for the sale included £63,000 for plant and machinery, with £5,000 for goodwill and IP. Other equipment, raw materials and work in progress was valued at £3,000.
One employee was made redundant, while the remaining staff were transferred under TUPE following the completion of the sale of the business.
As for creditors, it is estimated that unsecured creditors are owed £430,000, with the HMRC owed £250,000. Other claims included over £50,000 owed to Lloyds Bank, £18,000 owed to Wiltshire Council and £17,000 owed to GA Imports. Creditors are expected to suffer a shortfall of £362,000.
