Carpet and flooring retailer M6 Carpets owed creditors over £160,000 ahead of entering administration.

Mike Dillon and Hilary Pascoe, both of Leonard Curtis, were appointed as joint administrators of M6 Carpets Haydock Limited on 28 January 2025.

In the build up to its administration, the business, which traded from Pye Close in Haydock, was profitable for a number of years with turnover for the period ended 30 June 2022 reaching £448,000 alongside a profit of £51,000.

The following year, sales improved to £451,000 although a loss of £24,000 was incurred. For year ended June 2024, sales declined to £373,000 while losses widened to £42,000.

The company experienced a change in landlord at its premises which contributed to its losses as a number of rent reviews, resulting in price hikes, were implemented. Another review was conducted in December 2024 with the increase becoming unsustainable and would result in further losses.

The business then sought advice from Leonard Curtis, which – after a review, determined the company was unable to maintain payments to creditors, including its landlord, and it was likely that the landlord would eventually look to enforce their debt.

Upon entering administration, two members of staff were made redundant and the company ceased to trade.

As for creditors, preferential creditor, the HMRC is owed £4,000 and is expected to be repaid from realised assets valuing £49,000. Unsecured creditors are owed £159,000, including £49,000 owed to employees and £13,000 to Santander Bank, as well as £75,000 owed to its landlord Fisher German LLP. It is expected that creditors will suffer a shortfall of £115,000.