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sofaFrameTHE CLOSURE of occasional furniture maker Fuda International Trading will see creditors miss out on £3.5 million according to statutory filings.

 

North Shields based Fuda, also known as Hobart Rose, announced it was to cease trading and liquidate last month after it failed to recover from a lost contract.


It also blamed currency swings in the aftermath of last year's EU referendum, saying it forced up the prices of some of its raw materials by nearly a quarter.


Gordon Goldie and Andrew Haslam of Tait Walker LLP were appointed joint liquidators on May 16.


Secured creditors include RBS Invoice Finance, which is expected to recoup the £568,447 it is owed through the collection of the Fuda debtor book, worth £804,788.


The sale of its investment property should also be enough to pay off the £214,874 outstanding debt to Accord Mortgages, with the same scenario applicable regarding plant and machinery, and the £17,989 debt to Close Brothers Asset Finance.


Other equipment, including sewing machines and pillow making equipment, will fetch around half of the £108,487 outstanding to Lloyds Bank Commercial Finance, according to the report.


Fuda agreed a sale and leaseback of its freehold property to raise money during the previous financial year. Family pension fund Johnston Pension Trustees is listed as the largest unsecured creditor of the Fuda business, owed £1.14 million, in rolled up rent. Unsecured creditors face an overall shortfall of around £3.5 million, though should get a return under the UK's prescribed part regulations.


HMRC and the Redundancy Payments Service are listed with amounts of £262,581 of £438,247 owing with a series of trade creditors also owed five-figure sums (for more, see the Debt Report: Jun. 9, update).

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