Furniture business David Phillips Furniture owed creditors over £40m ahead of entering administration.
Samuel Birchall and Howard Smith, of Interpath Advisory, were appointed as joint administrators of David Phillips Furniture Ltd on 15 July 2025.
In the build up to its administration, the company, which was part of a wider group together with David Phillips (Rental) Limited and David Phillips (FF&E) Limited – both also in administration, experienced financial pressures due to a downturn in the construction sector.
Despite efforts by management to improve operational efficiency and strengthen cashflow, the business continued to face mounting financial pressure.
With management forecasting a group-wide funding requirement of c.£2.5 million arising in July 2025, Interpath were introduced to the Company by its largest secured creditor, Epic Private Equity Limited, to run a process to explore the sale, investment and refinance options for the Company and other trading entities in the Group in the timeframe available.
No offers, either on a solvent or insolvent basis, were forthcoming as a result of this process. As a result, the business filed for administration.
Upon appointment, administrators retained 32 employees to assist with an efficient and orderly wind-down of the business, while 115 staff were made redundant. In parallel, administrators continued to explore any interest forthcoming in the business and assets of the Company, however no offers for the business and assets were received.
With regards to creditors, secured creditor claims included £1m owed to HSBC Bank, £10.4m owed to Epic and £6.1m in Hamsard 3463 – a holding company within the group. “Based on current estimates, we do not expect the Bank, Hamsard 3463, or Epic to recover their debt in full,” the report said.
Preferential creditors included £180,000 owed to employees and £1.4m owed to the HMRC. Unsecured creditor claims included a further £1.1m owed to staff, £3.1m to the trade and £17.5m owed in intercompany debt. It is expected that creditors will suffer a total shortfall of £41.3m.
At the time of the appointment, Sam Birchall, Managing Director at Interpath and Joint Administrator of David Phillips Furniture Group, said: “David Phillips has been a trusted name in the property furnishings market for over 25 years, known for its quality, service and scale. We are now seeking buyers for the business and its assets and encourage interested parties to get in touch as soon as possible.” (See related).
