The closure of Tesco Direct has been cited by administrators as the reason for Ultra Furniture going into administration.

Steven Muncaster of Duff & Phelps was appointed administrator to the Dudley-based company, which employs 160, on 6th June.  

Ultra was a leading UK upholstery manufacturer, working with some of the UK’s best-known upholstery retailers and high-street brands at the same site for over 30 years. The company had continued to develop its facilities, design capabilities and quality systems during that period, and also had a dedicated production site in Kingswinford, Dudley in the West Midlands.

Steven states: “Ultra has been directly impacted by the announcement that Tesco Direct is being closed in July this year, given that it accounted for over 70% of the company’s sales. The directors of the business are clear that at this stage that the business as it currently stands cannot continue to trade following the loss of such a major customer.

“While we are continuing to market the business with the aim of finding a buyer, we have to stress that this is a hugely challenging market undergoing consolidation and cost pressures. We cannot confirm at this stage what will happen to the two sites and the current employees but we will be keeping people informed at every stage of the process.”