The group behind rugs retailer The Rug Seller and furniture brand Shabby owed creditors £1.6m ahead of entering administration.  

David Riley and Mark Blackman were appointed as Joint Administrators of Luxury Home Design Group Ltd, owners of brands The Rug Seller, Shabby and Luxe Tapi, on 13 March 2025.

Detailed in newly filed documents on Companies House, the business suffered a reduction in turnover during 2024 which had a negative impact on cash flow, while also receiving increasing pressure from its creditors.

The company managed to negotiate payment plans with some key suppliers and also obtained the support of the Bank and HMRC as it was anticipated that the position may improve during the historically busy trading period later in the year.

However, trading performance showed no signs of improvement towards the end of 2024 and the company was about to enter the slower part of the annual trade cycle. In addition, it was anticipated that enforcement action was imminent due to the increasing creditor pressure being received which could have had a detrimental impact on asset values.

Following a review of the business and its position, it was concluded that the business could not continue to trade in its current form and the insolvency process was initiated.

Upon appointment of administrators, the company ceased to trade with all 11 jobs lost. Administrators are in the process of selling company assets.

With regards to creditors, secured creditor HSBC Bank is owed £327,000. At the stage of the report, it was unclear what amount would be realised for repayment. Preferential creditor, the HMRC is also owed £314,000, while unsecured creditors are owed £980,000, with £72,000 owed to employee claims. Unsecured creditors are expected to suffer a shortfall of the entire amount.