Hart Miller Design, a design service working on interior spaces and furniture for hospitality, education and workplace projects, owed creditors over £700,000 ahead of entering administration.
Paul Stanley and Mark Weekes, both of Begbies Traynor (Central) LLP, were appointed as joint administrators of interior designer and furniture specialist Hart Miller Design Ltd on 30 December 2024.
In the build up to its administration, the company suffered continuous losses following the Covid pandemic, with sales and pipeline failing to return to pre-2020 levels where it was profitable.
To assist through the pandemic, the company took on a CBILS loan and has made repayment of almost the full amount, which has also contributed to cash flow.
Sales have also been impacted by the shift to home working, rising costs and general economic factors, while its London showroom was affected by staff issues and a claim brought forward by an employee.
In December 2023, the company looked to partner with a larger business to address weakened sales with an agreement with Bisley initially secured in February 2024. They provided an interest-free loan of £200,000 as well as agreeing to plan deliver sales through its own avenues.
The funding priority was to enable the company to put a support structure in place that would support the new partnership and sales strategy.
However, it became apparent that the Bisley sales channel was not delivering the results they had promised and later advised it was withdrawing all commitment to the joint venture.
“It was the reluctance of Bisley to provide support or even commit to any sales which led to the decision to cease trading,” the report said.
Upon appointment of administrators, secured creditor CIOSIF is owed £172,000, while preferential creditors, the HMRC and employee arrears are owed respective sums of £23,000 and £15,000. As for unsecured creditors, these are owed a combined sum of £544,000, with £200,000 owed to Bisley, £13,000 owed to consumers and £123,000 owed in relation to a contingency for its showroom lease.
It is expected that creditors will suffer a total shortfall of £754,000.
