A prominent British furniture manufacturer with a history stretching back to the post-war era has fallen into administration, resulting in significant job losses and the sale of its key assets.
A Legacy Brought Down by Market Headwinds
Moores Furniture Group Ltd, a company established in 1947 and based in Wetherby, has appointed administrators from Interpath Advisory. The firm, which once employed more than 450 people, specialised in supplying kitchens to a range of clients including housebuilders, the public sector, and affordable housing developers.
Joint administrators James Clark and Will Wright confirmed that 124 employees have been made redundant with immediate effect. A further 336 staff have been retained temporarily to assist with completing ongoing work. Interpath stated it is supporting those affected and helping them with claims to the Redundancy Payments Service.
Sale of Assets and Rescue Attempt
In a move to preserve some value and continuity, the administrators have sold the company's customer list and certain intellectual property assets. The buyer is Wren Trade Kitchens Limited, a subsidiary of the larger Wren Kitchens Ltd.
James Clark explained that the company had been battling severe challenges within the UK construction sector. "The strong headwinds facing the UK construction industry continue to have an impact on companies up and down the supply chain," he said. Despite making "strong progress" on cost reduction, the business ultimately succumbed to "challenging trading conditions", driven by increased costs and a significant downturn in housebuilding activity.
Attempts to secure a rescue deal through further investment or an outright sale of the business were unsuccessful prior to the administration.
What Happens Next for Customers and Staff?
The sale to Wren Kitchens offers a potential lifeline for the Moores brand and its customer base. Clark noted the deal "provides an opportunity to minimise disruption for customers and suppliers, and which will enable Moores' heritage in kitchen manufacturing to continue as part of the Wren family."
Wren Kitchens issued a statement acknowledging the situation. "Whilst the company was a competitor of ours, we believe it is in everyone's interests to have a strong kitchen industry based here in the UK," a spokesperson said. They revealed that Wren had been in talks with Moores but a deal to save the entire company could not be reached.
However, Wren has agreed an exclusive option to take on outstanding customer contracts, aiming for a seamless transfer. Furthermore, the group's contract division, which recently announced plans for a sales office in Harrogate, has agreed with the administrators to explore opportunities to offer alternative employment to a significant number of Moores' sales, operations, and support staff.
The collapse of this long-standing business underscores the intense pressure on suppliers within the UK's construction and housing sectors, marking the end of a 77-year chapter for Moores Furniture Group.
