Mattress retailer and manufacturer, The Hand Made Mattress Company, suffered from major customer losses and a slump in orders in the build up to entering administration.
Kelly Burton and Gemma Roberts, both of Wilson Field Ltd, were appointed as joint administrators of The Hand Made Mattress Company Limited on 14 July 2023.
The company initially focused on infant cots and mattresses, with its revenue reaching £4m by mid 2021, growing from £2m in 2020 and from £1m in 2015, as the business diversified into making branded mattresses for corporate customers and into manufacturing adult-sized mattresses.
During this time, the company relocated in 2017 to a larger premises to support this growth outlined above. At its peak, the company was manufacturing up to 100,000 mattresses per year.
Detailed in newly filed documents on Companies House, the business experienced the loss of two large customers towards the end of 2022 and saw turnover fall to £1m. The business also was left with a large amount of branded stock, which it had invested in to win the contracts and was now deemed worthless.
At the start of 2023, other long-standing customers significantly reduced orders due to the cost-of-living crisis and other cost factors. In an effort to downsize the business to reflect the level of turnover, the business reduced staff, however this was unsuccessful in stabilising the company due to associated running costs of the company.
Liabilities began to increase as losses mounted, with the company facing increasing pressure from creditors. Upon entering administration, it was deemed that the business was not viable to be rescued as a going concern and ceased to trade.
Admininstrators have instructed Walker Singleton to sell over 300 items from The Handmade Mattress Company by online auction, which is expected to close on Thursday 24 August.
Items include equipment for manufacturing, packaging, handling and storing mattresses and furniture, as well as two commercial vehicles. Also included is more than £200,000 worth of stock such as mattresses, divan bases, quilted mattress covers, drawer units, cots beds, high chairs, car seats, and parasols.
With regards to creditors, the business owed the HMRC £13,000 while employee preferential claims stood at £6,800. These are expected to be repaid from realised assets of £205,000. Unsecured creditor claims totalled £452,000, which included £103,000 owed to Funding Circle. Creditors are expected to suffer a shortfall of £266,000.
