Furniture company goes into receivership

A SCOTS furniture business has gone under, with almost two-thirds of its workforce being made redundant.

Trade Style Cabinets, based in Glasgow, has fallen prey to the recession and the housing market downturn. About 50 of its 80 employees have been laid off.

The remaining workers are helping KPMG's Blair Nimmo and Tony Friar, the firm's joint receivers, to identify and realise the company's principal assets.

Hide Ad
Hide Ad

Nimmo, head of restructuring for KPMG in Scotland, said: "Despite having an excellent reputation in its market place, Trade Style Cabinets – like many businesses – has suffered from the economic slowdown, which has significantly impacted upon housebuilders over the last 18 months.

"This led to trading losses being sustained during 2009 and cash-flow pressures, which were exacerbated when its associated company, Torwood Timber Systems, was placed into administration on 25 March."

Torwood, a Livingston-based kit house maker, and Trade Style Cabinets, which manufacturers high-quality, factory-assembled kitchen, bedroom and bathroom furniture, had a "common shareholder", said a KPMG spokesman, who declined to give further details.

Torwood was hit by the downturn in the housing market and the rising cost of credit.

Nimmo and Friar, also its joint administrators, made 16 of the 34 staff redundant, with the remaining 18 working with KPMG to sell the firm's assets.

In the year to 31 January, 2009, Torwood had a turnover of about 5 million. Nimmo said at the time of his appointment: "In recent months, a few of the company's suppliers have reduced credit terms, as credit insurance has become more difficult to retain.

"At the same time, key customers have cancelled orders."

Torwood was founded in 2003 and grew to employ 60 staff.

Trade Style, founded in 1992, supplies independent retailers and housebuilders under the English Rose and Wrighton brands and operates from a wholly owned 50,000sq ft factory on the Easter Queenslie Industrial Estate.

In the year to 31 January, the company turned over 5.5m, down 30 per cent on the previous year.