Beds and furniture supplier sold for £100k in prepack deal

Beds and furniture supplier Serene was severely impacted during the Covid-19 pandemic and fell behind on financial commitments in the build up to its administration.

Conrad Beighton and David Griffiths, both of Leonard Curtis, were appointed as joint administrators of West Bromwich-based Serene Beds and Furniture Limited on 14 March 2023.

Detailed in a newly filed report on Companies House, the business experienced rising costs, including a 30% increase in rent, and which made the company unprofitable and loss making. Furthermore, the local council issued an enforcement threat to distrain over assets following non-payment of business rates that had been accruing.

Some creditors, including the local council, had also initiated legal proceedings against the company, with the business not being able to continue to trade in its current structure, it filed to appoint an administrator.

Upon appointment, sales stood at £4m for the year ended 31 May 2021, with a pre-tax profit of £118,000, down from £322,000 the prior year.

Secured creditor, Bibby, is owed £229,000 against a gross sales ledger of £260,000. This ledger currently stands at £204,000 and £154,000 is due to Bibby. Collections across the ledger total £46,000, with Bibby also receiving a £10,000 distribution.

Preferential creditor, the HMRC is owned around £455,000, and is expected to suffer a shortfall of the entire amount. As for unsecured creditors, claims totalled £1.5m, with administrators stating that no distribution is likely to be available.

Administrators achieved a sale of the business on 31 March 2023 for a sum of £100,000, with £50,000 paid on completion and the remaining balance of £50,000 to be paid on deferred terms. The purchaser was an external party who are owners of a local bedding company by the name of Sleep Revolution.

Serene director Tasleem Tasab, along with all 35 staff of the business, were transferred to the purchasing company on completion, with the director to remain as a key employee in the new business going forward.

After entering administration, Serene apologised for any inconvenience or disruption this may cause. Tasleem Tasab, Managing Director of Serene Sleep Group Limited, expressed the company’s appreciation for the overwhelming support and comfort received from its agents, customers and suppliers during this difficult time.

“The company is committed to providing its customers with the best possible service and products and looks forward to continuing to do so in the future,” Tasleem said.

“Serene Beds and Furniture Limited is a well-known name in the furniture industry. The company has been in business for many years, and the acquisition ensures that it will continue to thrive in the years to come.”

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