// Sofa Workshop falls into administration following supply chain costs
// PwC administrators have been appointed to handle the process
Sofa Workshop has collapsed into administration, impacting 77 jobs.
The retailer said that supply chain and transport costs had led it to rack up trading losses.
Administrators from PwC, Toby Banfield, David Baxendale and Zelf Hussain, have been appointed to handle the process.
The company had 16 stores across the UK and operated online.
READ MORE: DFS sells The Sofa Workshop to Timothy Oulton
The administrators said that Covid-related supply chain disruption and significant increases in transportation costs on importing goods from Asia into the UK over the last year meant that the business has been unable to meet payments as they fall due and has remained reliant on the support of its shareholder.
They said: “Given the cash flow position of the business, potential sale options were explored with the aim of a purchaser providing the funding required to continue to deliver the business plan and take the company forward. However, no viable offers were received.”
Banfield said: “Unfortunately, given the sustained level of losses, the directors had no option but to appoint administrators to protect the creditors of the company.
Sadly, this has resulted in 77 redundancies having to be made today. We will do all we can to support workers impacted by the administration.
“From today, the company’s 15 stores and the website will cease to trade and no further orders will be taken. One store, 204-208 Tottenham Court Road will continue to trade for up to 14 days in order to sell through the floor stock.
“However, I’m pleased that we have been able to sell the order book, ensuring that customers will receive their outstanding orders.”
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