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Furniture retailer Aspace has agreed a company voluntary arrangement (CVA) with creditors after closing all its stores last month in favour of trading online.


The children’s furniture specialist — based in Warminster, Wiltshire where it also has its own manufacturing arm — had reported losses in each of the past four years, culminating in a £1.1m deficit on sales of £8.6m in 2013–14, its last filed accounts.


Sales were close to £15m as near back as 2010.


Simon Girling and Danny Dartnaill of BDO were appointed joint supervisors of Aspace Ltd’s CVA on 22 January 2016, while the pair were named joint liquidators of Aspace Manufacturing Ltd on the same day.


The CVA was almost universally backed by non-connected creditors and will preserve 50 jobs, BDO said in a press statement, with the business moving forward in a “primarily online only retail operation.”


Aspace had closed all seven of its shops — located across southern England — in early January with the loss of 37 jobs as part of a complete restructure.


Its CEO Dave Knight said: “In line with many consumer businesses, our sales had become heavily concentrated online, meaning that the retail stores were significantly loss-making.  We were very sorry to see good people leave, but the CVA has enabled us to restructure and build on the potential that Aspace undoubtedly has, with its strong brand and high quality products.”


Simon Girling, business restructuring partner at BDO said: “It is, of course, always disappointing to see jobs lost in these challenging times. However, we are very pleased to have secured this arrangement which will ensure stability for the company, its remaining employees and customer base. The directors will remain in full control of the business, with our role being to supervise the performance of the CVA to the terms agreed with its creditors.”


More later this week.