A DISPUTE with logistics supplier DSV prevented a solvent wind down of Morris Furniture Brands Limited, according to a report for creditors.

Jonathan Philmore of Huddersfield based Philmore & Co. was appointed administrator of the Yorkshire company on February 7.

Morris Furniture Brands was created in 2015 to facilitate the acquisition of Glasgow based H Morris & Co.’s furniture inventory and purchase order commitments by Nathan Furniture Group Limited.

The deal turned sour after it became apparent it had taken on too much stock; the result of over-ordering prior to the acquisition being completed, the report claims.

It also said a large proportion of customers were not paying outstanding invoices to terms, in part because of poor quality product and service issues.

A subsequent dispute with logistics company DSV — which was storing the furniture following the autumn 2015 transaction — prevented directors implementing a later plan to liquidate the stock and wind down the company in a solvent manner.

DSV placed a lien over the stock as it hadn’t been paid cash it said it was owed. The administrator — together with finance provider Bibby — has subsequently agreed an arrangement that should see stock released and outstanding orders find their way to customers.

Morris Furniture Brands’ debts total around £1 million though the collection of its debtor book and other asset realisations means the shortfall to creditors will be less. Bibby and H Morris & Co. hold security over monies they are owed.

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