Creditor pressure, alongside a VAT notice was behind the administration of independent furniture business Tonnik Limited.

Manchester-based Tonnik, a franchise of Danish furniture brand BoConcept, was issued a VAT notice of requirement to give security of £85,666 by HMRC, while it was also experiencing increased creditor pressure from the its store landlord in respect of rent arrears.

Mark Colman and John Titley of Leonard Curtis were appointed as administrators on 13 April 2016, and subsequently sold the business to Tonnik Interiors – also owned by Anthony and Nicola Wall – for a sum of £40,000.

At the date of the Joint Administrators being appointed, the franchisor, BoConcept was owed £8,709, while the Great Ancoats Street store landlord was a due a balance of £12,957, with the latter now discharged under the terms of the completed purchaser agreement.