Upholstery manufacturer Ashley Manor and sister brand Alexander & James have filed notice to file an administrator.
Sister brand Alstons is not affected, as parent TCM looks to restructure or sell Ashley Manor and Alexander & James.
‘The decision follows sustained pressure across the UK furniture manufacturing and import sectors driven by inflationary increases in raw material costs, international shipping disruptions, price volatility, higher labour expenses and reduced consumer demand for big-ticket items amid the cost-of-living crisis,’ says a TCM statement.
Opus Restructuring & Insolvency has been appointed as advisor.
‘This has been an extremely difficult decision but one we believe is necessary to protect the interests of all stakeholders whilst we navigate these prolonged market challenges. Both Ashley Manor and Alexander & James are respected brands in the UK furniture market and we have been exploring, and continue to explore, every viable option to safeguard their future,’ says Andy Kennaugh, TCM Living Group ceo.
‘The cost-of-living pressures have had a direct impact on recent sales volumes, due to the tight squeeze on discretionary spending for all consumers. A leading manufacturer – with a wide range of furniture collections, a British-designed import business, highly experienced and skilled staff, and a modern manufacturing facility – makes for a very attractive prospect for buyers.,’ says Trevor Binyon, Opus partner.
‘Since entering the UK market in 2013, the investment environment has shifted significantly. This is predominantly due to the climate becoming less investor-friendly due to persistent economic pressures, political instability, regulatory changes and market volatility. Compounding these issues are unfavourable fiscal policies which include post-Brexit tax adjustments and reduced incentives for foreign direct investment which have eroded the attractiveness that drew us to the UK in 2013. The Asia Pacific region presents a markedly more attractive investment landscape,’ continues the TCM statement.
