Sussex Bed Centres has restructured through a sale prior to administration after an earlier CVA and store closure programme proved insufficient to save the business.

The company — Offaway 2014 — was placed into administration through Chris Williams and Andrew McTear of McTear Williams and Woods on 8th December.

Two weeks earlier, the directors sold the business and assets of the regional beds chain to a newco called Sussex Bed Centre (Distribution) for £150k, payable in 24 monthly instalments of £6,250.

In March 2013, Offaway 2014 — at the time called Sussex Bed Centre Ltd — agreed a CVA with creditors that involved exiting four unwanted premises, cutting jobs and reducing its annual cost base by £455k.

The business agreed to make monthly payments to creditors of £5k rising to £9k plus a share of profits over a five year period, though a subsequent fall in revenue meant it was unable to sustain the agreement.

Its asset sale and fall into administration means the new company will be able to start afresh, save for the monthly fee to acquire the assets of the former business.

Offaway 2014’s assets are expected to raise £173k in all, with creditors owed £1.6m. Of that, CVA creditors are owed £952k, with HM Revenue & Customs the remaining main creditor, owed £280k in combined VAT, PAYE and National Insurance Contributions.

Sussex Bed Centres’ website lists its current store portfolio comprising shops in Bexhill, Burgess Hill, East Grinstead, Hailsham, Haywards Heath, Newhaven, Portslade and Uckfield.

Companies House filings show that besides the new Sussex Bed Centre (Distribution) company, other new incorporations include companies appearing to represent each store, with the town name in brackets. For example, Sussex Bed Centre (Newhaven) Ltd and Sussex Bed Centre (Portslade) Ltd.

* An extensive list of creditors, including the CVA creditors, will feature in this Friday’s update of the Debt Report.