Ashley Manor, a UK manufacturer of quality upholstered furniture, and Alexander & James Sofas, a British-designed import business, both owned by TCM Living Group, has announced that they have filed a Notice of Intention to Appoint Administrators (NOI) with the court.
This protective measure provides the companies with a moratorium period to explore strategic restructuring options.
The decision follows sustained pressure across the UK furniture manufacturing and import sectors driven by inflationary increases in raw material costs, international shipping disruptions, price volatility, higher labour expenses and reduced consumer demand for big-ticket items amid the cost-of-living crisis.
Ashley Manor operates as a UK-based manufacturer of upholstered furniture whilst Alexander & James is TCM Living’s premium import business with British-designed sofas manufactured in Thailand and distributed to retailers across the UK and internationally. Recent trading headwinds have placed both businesses under significant liquidity pressure.
The Notice of Intention provides breathing space from creditor action while the companies and their advisers, Opus Restructuring & Insolvency, assess all strategic options which include both a potential sale of the business(es) or alternative restructuring arrangements.
“This has been an extremely difficult decision but one we believe is necessary to protect the interests of all stakeholders whilst we navigate these prolonged market challenges,” said Andy Kennaugh, CEO of TCM Living Group. “Both Ashley Manor and Alexander & James are respected brands in the UK furniture market and we have been exploring, and continue to explore, every viable option to safeguard their future.”
Trevor Binyon, Partner at Opus adds, “The current economic climate is particularly challenging for all businesses in the furniture market. The cost-of-living pressures have had a direct impact on recent sales volumes, due to the tight squeeze on discretionary spending for all consumers. A leading manufacturer – with a wide range of furniture collections, a British-designed import business, highly experienced and skilled staff, and a modern manufacturing facility – makes for a very attractive prospect for buyers.”
TCM Corporation PLC, which is the parent company TCM Living Group, acquired Ashley Manor and Alexander & James as part of its strategic expansion in the UK furniture sector. Ashley Manor has long been a significant employer in UK furniture manufacturing, whilst Alexander & James has built a strong reputation for combining British design heritage with international production capabilities.
Alstons Upholstery Operations Unaffected
Alstons Upholstery, which operates as a separate and consistently successful business within the TCM Living Group portfolio is not included in this restructuring process. Alstons’ operations remain completely unaffected, and the company continues to trade normally.
Deteriorating UK Investment Climate Triggers Strategic Portfolio Review
The challenges facing Ashley Manor and Alexander & James reflect broader concerns at TCM Corporation PLC, the parent entity of TCM Living Group, regarding the deteriorating UK investment climate. Since entering the UK market in 2013, the investment environment has shifted significantly. This is predominantly due to the climate becoming less investor-friendly due to persistent economic pressures, political instability, regulatory changes and market volatility. Compounding these issues are unfavourable fiscal policies which include post-Brexit tax adjustments and reduced incentives for foreign direct investment which have eroded the attractiveness that drew us to the UK in 2013.
Current forecasts show UK GDP growth of only 1.0-1.2% in 2025, and similar modest growth in 2026, which is significantly below historical averages and markedly lower than Asia Pacific projections. In contrast, the Asia Pacific region presents a markedly more attractive investment landscape. According to the Asian Development Bank’s latest outlook, developing Asia and the Pacific is forecast to grow at 4.7% in 2025 and 4.6% in 2026, with several key markets including Vietnam (5.8%), Philippines (5.3%), and India (6.4-6.7%) significantly outperforming UK projections.
“We entered the UK market in 2013 with strong optimism for its potential, drawn to what was then a highly investor-friendly environment. However, the landscape has since deteriorated into a far more challenging arena marked by persistent economic uncertainties and significantly reduced incentives for foreign investment,” said Pimol Srivikorn, Chairman of TCMC PLC.
“Despite these challenges, we remain grateful for the UK’s rich design heritage, which has inspired so much innovation, and for the exceptional people we have had the pleasure of working with – our dedicated employees, valued customers, and trusted suppliers.”
Continuing Operations
Over the coming weeks, the companies will endeavour to continue operating whilst evaluating the best path forward. This includes exploring the possibility of a sale that could help secure the future of these heritage brands. Both Ashley Manor and Alexander & James will remain operational during this period, working to fulfil their current order books and support customers.
The companies are working closely with their advisers to review all strategic alternatives during the notice period and will keep customers, suppliers, and partners informed as the situation develops.
