UK upholstery manufacturer Ashley Manor and British-designed import business Alexander & James Sofas, both owned by TCM Living Group, have announced that they have filed a Notice of Intention to Appoint Administrators (NOI), stating that "this protective measure provides the companies with a moratorium period to explore strategic restructuring options".
The group says the decision "follows sustained pressure across the UK furniture manufacturing and import sectors, driven by inflationary increases in raw material costs, international shipping disruptions, price volatility, higher labour expenses and reduced consumer demand for big-ticket items amid the cost of living crisis".
Ashley Manor operates as a UK-based manufacturer of upholstered furniture, while Alexander & James is TCM Living's import business, offering British-designed sofas manufactured in Thailand and distributed to retailers across the UK and internationally. Recent trading headwinds have placed both businesses under significant liquidity pressure.
TCM Living says the NOI provides breathing space from creditor action while the companies and their advisers, Opus Restructuring & Insolvency, assess all strategic options – which include both a potential sale of the business(es) or alternative restructuring arrangements.
"This has been an extremely difficult decision but one we believe is necessary to protect the interests of all stakeholders whilst we navigate these prolonged market challenges," says Andy Kennaugh, CEO of TCM Living Group. "Both Ashley Manor and Alexander & James are respected brands in the UK furniture market and we have been exploring, and continue to explore, every viable option to safeguard their future."
Trevor Binyon, a partner at Opus, adds: “The current economic climate is particularly challenging for all businesses in the furniture market. The cost of living pressures have had a direct impact on recent sales volumes, due to the tight squeeze on discretionary spending for all consumers. A leading manufacturer – with a wide range of furniture collections, a British-designed import business, highly experienced and skilled staff, and a modern manufacturing facility – makes for a very attractive prospect for buyers.”
TCM Corporation (TCMC), the parent company of TCM Living Group, acquired Ashley Manor and Alexander & James as part of its strategic expansion in the UK furniture sector. Ashley Manor has long been a significant employer in UK furniture manufacturing, while Alexander & James has built a reputation for combining British design heritage with international production capabilities.
Alstons Upholstery, which operates as a separate and "consistently successful" business within the TCM Living Group portfolio, is not included in this restructuring process. Alstons' operations remain completely unaffected, and the company continues to trade normally.
TCMC says the challenges facing Ashley Manor and Alexander & James reflect broader concerns regarding "the deteriorating UK investment climate. and continues: "Since entering the UK market in 2013, the investment environment has shifted significantly. This is predominantly due to the climate becoming less investor-friendly due to persistent economic pressures, political instability, regulatory changes and market volatility.
"Compounding these issues are unfavourable fiscal policies which include post-Brexit tax adjustments and reduced incentives for foreign direct investment which have eroded the attractiveness that drew us to the UK in 2013.
"Current forecasts show UK GDP growth of only +1.0-1.2% in 2025, and similar modest growth in 2026, which is significantly below historical averages and markedly lower than Asia Pacific projections. In contrast, the Asia Pacific region presents a markedly more attractive investment landscape. According to the Asian Development Bank's latest outlook, developing Asia and the Pacific is forecast to grow at +4.7% in 2025 and +4.6% in 2026, with several key markets including Vietnam (+5.8%), Philippines (+5.3%), and India (+6.4-6.7%) significantly outperforming UK projections.
Pimol Srivikorn, chairman of TCMC, notes: "We entered the UK market in 2013 with strong optimism for its potential, drawn to what was then a highly investor-friendly environment. However, the landscape has since deteriorated into a far more challenging arena marked by persistent economic uncertainties and significantly reduced incentives for foreign investment.
"Despite these challenges, we remain grateful for the UK's rich design heritage, which has inspired so much innovation, and for the exceptional people we have had the pleasure of working with – our dedicated employees, valued customers, and trusted suppliers.”
Over the coming weeks, the companies will endeavour to continue operating while evaluating the best path forward, says TCM Living. This includes exploring the possibility of a sale that could help secure the future of these heritage brands. Both Ashley Manor and Alexander & James will remain operational during this period, it adds, working to fulfil their current order books and support customers.
"The companies are working closely with their advisers to review all strategic alternatives during the notice period and will keep customers, suppliers and partners informed as the situation develops, TCM Living concludes.
