Mattress brand Mammoth was sold for £75,000 in a pre-pack deal after entering into administration.

Mark Ranson and Emma Mifsud, both of Opus Restructuring LLP, were appointed as joint administrators of Mammoth Sit and Sleep Ltd on 4 October 2024.

In the build up to its collapse, the business had traded profitably until suffering losses during the Covid-pandemic. These losses amounted to £20,000 for the year ended 31 December 2021.

Given the amount of the debt and tight cashflow, the company could not support current trading levels and increase any activity levels.

The company approached Opus in August 2024 regarding its position and potential options. Following a review, administrators were appointed on the date as mentioned above. At the time of appointment, losses had widened to £462,000, with turnover reaching £475,000.

Upon appointment, administrators completed a pre-pack sale of the company’s business and assets to connected party Blue Dragon Assets Ltd, owned by the same director, for a total sum of £75,000, which was received in full.

However, before the sale was concluded, a marketing process was underway which resulted in seven parties expressing an interest, with one offer from an unconnected party received to the sum of £100,000 for the IP. The deal would be structured of £25,000 paid upfront while the remaining balance to be paid in three repayments. This would only be payable based on forecasts being achieved and paid by deferred consideration over three years.

It was deemed that the offer from the connected party was the best to proceed with.

As for creditors, preferential claims, including £1,608 from employees and £1,844 from the HMRC, are expected to be repaid in full from realised assets valuing £102,000.

Unsecured creditors are owed over £1.2m, which includes £211,500 owed to Growth Funding Loan, £195,000 owed to NEL Funding Loan and £150,00 owed to CBILS Funding Loan, as well as £674,000 owed to the trade. It is expected that creditors will suffer a shortfall of £1.1m.

Since the pre-pack sale, Mammoth confirmed that, following a comprehensive restructure, bed manufacturer Dura Beds acquired the UK licence for Mammoth beds, mattresses and bedding. Under the agreement, Dura Beds were to take on the manufacturing of Mammoth’s flagship Comfort collection and its Performance collection.

However, this agreement has now been terminated by Dura Beds. See Related.