Nottinghamshire-based Home Curtains UK Limited, an importer and retailer of soft home furnishings, was unable to secure a sale ahead of entering administration.
Dean Nelson and Nicholas Osborn, of business recovery and restructuring at PKF Smith Cooper, were appointed as joint administrators of Home Curtains (UK) Limited on 17 January 2025.
In the build up to the appointment, the business was unable to withstand the pressures of the current economic environment. The increases in costs, including those related to raw materials, shipping, and energy, coupled with inflationary pressures and reduced consumer spending, led to the business struggling to maintain profitability.
Ahead of entering administration, three offers were received but none were in respect of the business as going concern, nor including the company’s employees. One of the offers was from a connected party, but was rejected due to being insufficient. The other two broke down due to an overlap between the stock.
Upon appointment of administrators, it was agreed that the company had sufficient resources to continue to trade under close supervision while another marketing process was initiated for the sale of the business assets. The report detailed that there has been no sale of assets to connected parties at the time of the report.
As for creditors, the report detailed that preferential creditor, the HMRC, is owed £272,000 and is expected to be repaid from realised assets valuing £969,000. The assets are largely made up from cash at the bank (£481,000) and book debts of £370,000.
Unsecured creditors are owed £772,000, which includes employee claims of more than £340,000 and a Funding Circle loan of £99,000. It is expected that creditors will suffer a shortfall of £90,000.
Founded in 1986, Home Curtains offers a wide range of curtains, accessories, lace, and custom-made voiles to customers across the UK and Europe. At the time of entering administration, the business said: “This decision has been incredibly difficult and not taken lightly, and like many businesses in the retail and home furnishings sector, we have been deeply affected by the rising costs of trade and reduction in consumer discretionary spending.
“We want to express our gratitude to our incredibly long serving employees, for their hard work and dedication, and our loyal customers. We remain optimistic that a solution may be found to preserve elements of the business and its legacy.”
Dean Nelson, Head of Business Recovery and Restructuring and Partner at PKF Smith Cooper, added: “Home Curtains UK has faced significant challenges over recent months, including rising costs and an unfavourable economic environment.”
