Sofa Workshop has collapsed into administration – costing 77 employees their jobs.
The upmarket furniture retailer, which has 16 stores across the UK, has racked up significant losses throughout the pandemic and has been battered by recent supply chain chaos.
Its owner, furniture brand Timothy Oulton, tried to sell the business to a buyer who would fund its operations.
Collapse: Sofa Workshop, which has 16 stores across the UK, has racked up significant losses throughout the pandemic and has been battered by recent supply chain chaos
But it did not receive any offers, and after Sofa Workshop was unable to keep up with its debt payments, Timothy Oulton appointed PwC to handle an administration.
Timothy Oulton will fulfil its outstanding orders and all but one of its stores will close. The remaining store in London will have two weeks to sell its stock.
Sofa Workshop was founded in 1985 and was bought in 2020 by Timothy Oulton from DFS for £300,000.
PwC will now explore options for the handmade furniture business, including a sale of the brand.
PwC partner Toby Banfield said: ‘Unfortunately, given the sustained level of losses, the directors had no option but to appoint administrators to protect the creditors.’
