Administration for Ultra after Tesco Direct closure
Upholstery manufacturer Ultra Furniture has gone into administration after its main customer announced it was closing.
Steven Muncaster of Duff & Phelps, was appointed administrator on 6 June. The move comes after Tesco said it would close down Tesco Direct in July: Tesco Direct accounted for 70% of Ultra’s sales.
Ultra has production sites in Dudley and nearby Kingswinford and employs 160 people.
‘Ultra has been directly impacted by the announcement that Tesco Direct is being closed in July this year, given that it accounted for over 70% of the company’s sales. The directors of the business are clear that at this stage that the business as it currently stands cannot continue to trade following the loss of such a major customer,’ said Muncaster.
‘While we are continuing to market the business with the aim of finding a buyer, we have to stress that this is a hugely challenging market undergoing consolidation and cost pressures. We cannot confirm at this stage what will happen to the two sites and the current employees but we will be keeping people informed at every stage of the process.’