Administrators of Manchester-based specialist furniture supplier Mountrose Limited has revealed that an estimated total shortfall to its creditors stands at £5.695m.
Alastair Massey and Ben Woolrych, from FRP Advisory, were appointed as administrators on 11 July 2016 as Mountrose registered a downfall in sales by £4.8m from March 2013 (£14.7m) to March 2016 (£9.9m), as the company continued to struggle with cash flow difficulties.
The report highlighted that Mountrose saw a reduction in turnover due to reduced order intake as well as the loss of key customers.
Compiled within the creditor list includes a variety of business through its trade and expenses, owing over £3m, whilst HMRC have a bill of £634,000 and employee unsecured claims of £248,000. Completing the shortfall is a £1.7m charge from banking firm HSBC.
Administrators have also marketed the sale of its subsidiary Home Distribution business to 79 interested parties, with the potential sale currently ongoing.
Mountrose, which supplied big name retailers including Argos, Wayfair, Furniture123 and Carpetright, had once been a profitable business, with accounts from 2012 to 2013 highlighting profits of £94,000 and £136,000, whilst seeing profit shrink to £92,000 in 2014.