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Multiyork's now-empty flagship store on Tottenham Court Road, London
Duff & Phelps is exploring the possibility of taking action against Multiyork's foam suppliers in a bid to raise more cash for the company's creditors.

 

The advisory company — appointed administrator of the fallen upholstery business back in November — said it is reviewing a potential claim following an investigation into an alleged pricing cartel.


Back in 2014, the European Commission handed down fines totalling €114 million after saying four major producers of flexible polyurethane foam colluded over sale prices between 2005 and 2010.


In the period since, foam companies have been hit by a number of claims from suppliers, while administrators of companies to have subsequently gone bust have also not been shy in trying to recover cash.


In 2016, lawyers acting on behalf of administrators for Horatio Myer & Co, the beds business whose assets were later sold to Steinhoff, successfully recovered £2.1 million from unnamed foam suppliers following a damages claim.


Accounts for Airsprung last year revealed the Trowbridge group had received "a significant cash benefit from compensation related to a foam cartel litigation claim."


The Furnishing Report knows of at least one other bed company that has recovered close to £1 million in compensation for loss of income believed to relate to the same investigation.


Four years on, Duff & Phelps' comments suggest foam companies cannot yet consign the cartel investigation to history.


It is not known which companies supplied foam to Multiyork. Prima Foam, a division of Vitafoam, was the only significant foam supplier listed as being owed cash by Multiyork in insolvency documents filed with the Companies Registrar. Vita Group declined to comment.