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oakFurnitureSolutions
Oak Furniture Solutions' website, where the company is thought to have generated the bulk of its sales
Margin pressures and rising online marketing costs were behind the failure of cabinet furniture retailer Oak Furniture Solutions, according to a new report into the collapse of the business.

 

David Kirk and Lisa Thomas of provincial insolvency outfit Kirks were appointed joint administrators of Contemporary Oak Furniture, the company behind the brand, on January 30.


Their first report to creditors — filed some weeks after the release of who was owed what by the retailer (see related) — reveal it was becoming increasingly expensive to advertise the business online, with it struggling to market itself profitably.


Owner Robin Hunt told administrators that to achieve the same profit on search engines, the company was having to spend more and more, while import costs had also increased as a result of negative currency exchange, eroding margins.


Search giant Google was among the company's largest creditors (see related).


The Avonmouth, Bristol based company slipped to a loss of £243,080 on revenue down 17 percent to £9.15m in the year to end June 2017.


Oak Furniture Solutions, which also traded from an Aintree, Liverpool showroom, employed 42 staff including its sole director, all of whom were made redundant by February 9, 2018.


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