Bedroom furniture retailer owes creditors over £1m following closure

London-based bedroom furniture retailer instrument owed the taxman over £300,000 alongside an unsecured creditor bill of just over £1m ahead of its collapse.

Clive Morris, of Marshall Peters, was appointed as liquidator of Instrument Limited on 1 June 2023.

Detailed in newly filed documents on Companies House, the business owed preferential creditor employee claims £20,600, with the majority of which expected to be repaid from realised assets of £18,500.

However, the HMRC is owed £327,000 while unsecured creditor claims totalled £1m, with a further £82,000 owed to employees. Around £650,000 is owed to the trade, £165,000 owed to Shopify and £50,000 owed to Barclays Bank. It is expected that creditors will suffer a shortfall of £1.3m.

Upon ceasing to trade, instrument said in statement: “It is with a heavy heart that we must inform you that our business has gone into insolvency process. We understand the impact this news may have on you, and we want to express our deepest sympathies for any inconvenience or disappointment this may cause.

“We assure you that we did everything in our power to keep our business afloat during these difficult times of inflation and high cost of living. Unfortunately, despite our best efforts, we were unable to overcome the financial challenges we faced.

“As a result, we have had to let go of all our office and road staff members immediately, with a just few fitters to do reminder of stock orders. We understand that this news may come as a shock to you, and we apologise for any disruption this may cause.

“We want you to know that we are truly sorry for any inconvenience this may cause you, and we appreciate your support and loyalty over the nine years we operated.”

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