Multi-million pound upholstery business enters administration

7th January | sofabeds | Another of Argos’ furniture suppliers has gone into administration, the Furnishing Report understands. Europa Sofabeds, a large upholstery supplier based in the north east, has appointed the Leeds office of Begbies Traynor as administrators.

Europa’s problems follow the administration late last year of Meristem – a major flatpack cabinet supplier to Argos. Europa, which employs more than 170 staff, is also known to supply independent and mail order retailers.

Last September, the firm was fined after a Trading Standards investigation showed the firm to be guilty of supplying upholstery that failed to meet the Furniture and Furnishings (Fire) (Safety) Regulations. The firm pleaded guilty to five separate offences, four of them under the Trade Descriptions Act.

Trading Standards officers had bought the sofas from a store in Cramlington.

Update | 8th January | The administrator has laid off 170 of the firm's 175 employees - retaining just a skeleton admin team. Begbies Traynor says its main focus has now switched to chasing payments from debtors and clearing the firm's stock.