Furniture retailer Fabb Sofas has fallen into administration after citing an inability to “meet payments as they fall due”.
The retailer, which was founded by billionaire and DFS founder Lord Kirkham in 2016, has appointed PwC as administrators after a failed sale process, despite “achieving significant revenues”.
According to PwC, the business was reliant on external funding to cover to support trading losses, which have since been pulled forcing the directors into administration.
“Since incorporation, the company has grown rapidly to nine stores across England and Scotland,” PwC stated on Fabb Sofa’s site.
“Despite achieving significant revenues in such a short period, the business remained reliant on external funding to support trading losses.
“Unfortunately, it was not possible to achieve a sale and as such the directors had no option but to appoint administrators to protect the creditors of the company.”
Kirkham founded DFS in 1969 in an old billiard hall. In 2010 he sold the business to Advent International, in a deal which is understood to have made him £300 million.
The 73-year-old was reported to be worth £1.2 billion the 2018 Sunday Times Rich List.