Fitted furniture manufacturer Panel Plan has been sold in a pre-pack deal after being placed into administration.

Gary Pettit, of PBC Business Recovery & Insolvency Ltd, was appointed as administrator of Panel Plan Limited on 13 July 2023.

Detailed in newly filed documents on Companies House, the business suffered from a downturn due to Brexit and during the Covid pandemic as well as cost price increases.

Furthermore, a key employee left the business in 2022 on medical grounds and put increased pressure on the director. Sales for the year ended January 2022 stood at £1.6m, while losses narrowed from £128,000 to a loss of £10,000.

After reviewing its financial position at the start of this year, administration was the only viable route in order to secure a pre-pack sale to newco Apollo Furniture Limited.

Apollo, an unconnected company, acquired the assets and business of Panel Plan for a total sum of £44,000, which was paid on completion. The director of Panel Plan Limited has moved over to the new company as an employee.

Company creditors are expected to suffer a total shortfall of around £1m, with the majority being owed to trade claims valuing over £700,000.