CPW Furniture, a well-recognised supplier of pine furniture based in Rye, East Sussex, went into liquidation earlier this month. The business – which was built from the remains of bedroom and living room furniture company Country Pine Warehouse – has made its entire workforce redundant and has ceased trading.
Restructuring firm FRP Advisory was appointed chief practitioner. Partner Chris Stevens, who is advising the board of directors of CPW Furniture, comments in advance of the creditors’ meeting: “The company had tried to restructure itself from a former furniture business operated from the same location and compete again in a tough market.
“Small high street furniture retailers – which form the large part of this business turnover – however loyal their local customer base may be, can find themselves undercut by larger operators which increasingly benefit from economies of scale in a market where margins can be paper thin. Regrettably, unsustainable pressures on cash flow has forced management to cease trading, lay off staff and enter a liquidation process. The impact on cash flow is directly attributable to a decline in turnover in recent months, from which the company could not recover.”