Having ventured into administration last month, Corndell Furniture Company has been purchased by and subsequently amalgamated with newly created company, Corndell Quality Furniture. The restructuring firm charged with overseeing the administration, have confirmed that all assets have been successfully moved on and the company’s trading undertakings can be revived.
With the security of the company assured, Corndell Quality Furniture will be able to drive onwards towards new goals without the constant haranguing of anxious creditors. Based in Witney, Oxfordshire, the furniture business boasts over 700 stores in the UK and Ireland, the existence of which are indicative of its extensive clientele.
The sale of the company will come as welcome news to the majority of its employees, as 84 staff members, who had been left in lurch, were informed of the solidification of their position within Corndell Quality. The number of employees retained emerged considerably higher than that which was hypothesized at the time of the appointment of the Insolvency Practitioners.
Geoff Rowley and Jason Baker, partners at FRP Advisory, were selected as joint administrators to the Corndell Furniture case, after a period of unyielding financial turmoil involving an eroding relationship with suppliers and exhaustingly low levels of capital. In the subsequent 3-4 weeks following initiation, Baker & Rowley placed the company on the market and held talks with over 30 interested parties. The resulting sale to Corndell Quality appeared the best, most profitable route to take for the ailing company, whilst the number of jobs saved provided an added bonus.
One of the joint administrators, said: “We are delighted to confirm the sale of the business and assets to Corndell Quality Furniture Limited, safeguarding all 84 jobs retained during an intensive three week administration process. This is great news for the business, staff, the local economy and the wider furniture industry.
“Since our appointment on 24th June it has been possible to continue to trade the business and meet ongoing customer demand. That process has been possible with the support and assistance of the workforce, suppliers and customers for which we are grateful. During the course of the administration we were able to actively market the business for sale and engaged with numerous interested parties.
“We proceeded with an offer from Corndell Quality which is backed by two of the largest suppliers to Corndell. Whilst the suppliers in question suffered their own losses due to the failure of Corndell Furniture, they recognise the underlying value in the business and were keen to invest to take the ongoing business forward. We are aware that key customers and suppliers are supportive of the acquisition which sees the long term future of Corndell secured. We wish Corndell the very best under its new ownership.”
Steve Jackson, director at Corndell Quality, says: “The past two weeks have been challenging but thanks to our loyal staff and supportive retail partners we continue to trade as normal, fulfilling our strong order book. Under new ownership we now have the financial strength and stability to build a stronger and more profitable business. With over 30 years’ experience in the furniture industry Corndell can continue to provide high quality products built on great craftsmanship for its wide range of customers throughout the country.”
Corndell Furniture Company’s successful climb out of administration ought to be earmarked by fellow struggling companies, as it represents the positive ramifications a company can experience if afforded shrewd, informative guidance. FRP Advisory’s handling of the case can be credited, as highlighted by the number of jobs saved; their belief in the structure of the company can be lauded as a key reason for saving Corndell Furniture from liquidation and as such, allowing it to maintain its trading.