UK upholstery manufacturer Ashley Manor, and British-designed import business Alexander & James Sofas, both owned by TCM Living Group, have announced that they have entered administration through liquidation following an unsuccessful search for new ownership.
The companies, which first filed a Notice of Intention to Appoint Administrators on 27th August, have been unable to secure viable offers that would preserve the businesses as going concerns, reports Opus Restructuring & Insolvency, which will oversee the administration: "Despite comprehensive marketing efforts throughout the moratorium period, no buyers could be secured. All parties who expressed initial interest ultimately withdrew, citing ongoing economic volatility and persistent industry headwinds as prohibitive factors for acquisition."
Both businesses have ceased trading operations, with factory closures taking place on Monday 15th September.
"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," states Opus.
Ashley Manor operates as a UK-based manufacturer of upholstered furniture, while Alexander & James is TCM Living's import business, with British-designed sofas manufactured in Thailand and distributed to retailers across the UK and internationally.
"This has been an extremely difficult decision and one we deeply regret having to make," says Andy Kennaugh, CEO of TCM Living Group. "Despite our intensive efforts over recent weeks and the support we've received, we have exhausted all viable options for securing new ownership that would preserve these businesses. Both Ashley Manor and Alexander & James have been well-respected brands in the UK furniture industry, and we are committed to handling this process with dignity whilst ensuring all stakeholders receive the support they need."
Colin Wilson, managing partner at Opus, adds: “The current economic climate is particularly challenging for all businesses in the furniture market. 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. It is unfortunate that a buyer could not be secured in this instance and we now enter the process of realising the company’s assets for the benefit of creditors.”
TCM Corporation, the parent company of TCM Living Group, acquired Ashley Manor and Alexander & James as part of its expansion in the UK furniture sector. Ashley Manor has long been a significant employer in UK furniture manufacturing, while Alexander & James built a reputation for combining British design heritage with international production capabilities.
Alstons Upholstery, which operates as a separate business within the TCM Living Group portfolio, is not included in this administration process. Alstons' operations remain completely unaffected, says Opus, and the company continues to trade normally.
The companies are working closely with employee rights specialist ERA Solutions to ensure all affected employees receive comprehensive information support through the Government's Redundancy Payments Service. Support services will be provided to assist employees during this transition.
"The closure of Ashley Manor and Alexander & James reflects broader concerns at TCM Corporation regarding the deteriorating UK investment climate," the parent company adds. "Since entering the UK market in 2014, the investment environment has shifted significantly, becoming less investor-friendly due to persistent economic pressures, political instability, regulatory changes and market volatility. Compounding these issues are unfavourable fiscal policies including post-Brexit tax adjustments and reduced incentives for foreign direct investment."
Pimol Srivikorn, chairman of TCMC, says: "The decision to exit these UK operations was not made lightly, but reflects the fundamental shift in Britain's economic landscape since our initial investment over 10 years ago. We have witnessed firsthand how regulatory uncertainty, fiscal policy changes, and persistent economic headwinds have created an environment where even well-established businesses with strong brand recognition cannot attract viable investment for continuation.
"This outcome, while disappointing, reinforces our strategic pivot towards markets that offer greater stability and growth potential. Our thoughts are with the dedicated employees who have contributed so much to these brands over the years."
Opus Restructuring & Insolvency will now oversee the orderly wind-down of both businesses. The administrators will work to settle outstanding obligations where possible while managing the administration process in accordance with insolvency procedures.
Customers with outstanding orders and suppliers with queries are advised to contact the administrators directly.
