British upholstery manufacturer Joynson Holland goes into administration

11th June 2009 | insolvency | Show-wood upholstery manufacturer Joynson Holland has appointed administrators with director Ian MacGuffog saying the firm had fallen ‘victim to the credit crunch.’

Insolvency practitioners Harris Lipman will endeavour to sell the British manufacturer as a going concern, but MacGuffog admits major surgery is needed by way of restructuring the business.

He pinpointed five problem areas – a fall in sales in the grey market, falling demand in the contract sector, problems obtaining credit insurance, lack of bank support, and finally the deterioration of tenants on a site the business is responsible for.

He told the Furnishing Report, however, that a buyer was ‘very likely to be found,’ saying that the loss of 70 jobs and the permanent closure of the business was the last resort and worst-case scenario.

The firm will fulfil all outstanding orders, he said, before adding that his nine-year involvement with the firm was likely to be coming to an end.

Joynson Holland made an operating profit of £163,000 in the year to August 2007 and £98,000 the year before. The firm ran at an operating loss in each of the three prior years.