Tough global and regional market conditions have forced two of the UK’s largest sofa firms, both based in the Midlands, to the brink of collapse.
Dudley-based Ashley Manor, a leading UK manufacturer of quality upholstered furniture, which employs around 200 staff, and Alexander & James Sofas, a British-designed import business based in Long Eaton, Notts, both owned by TCM Living Group, headquartered in Dudley, tonight announced they had filed a court “notice of intention to appoint administrators.”
UK sofa giant TCM Living based in Dudley
“This protective measure provides the companies with a moratorium period to explore strategic restructuring options,” said a spokesperson for Opus, an insolvency firm advising TCM.
The announcement came as the UK furniture sector faces challenges from rising raw material costs, global shipping disruptions, volatile prices, increased labor costs and reduced consumer spending on big-ticket items due to the cost-of-living crisis.
These headwinds have led to severe liquidity issues at both of the embattled companies.
Opus Restructuring & Insolvency is advising on options including a potential sale or restructuring.
“This was a difficult but necessary decision to protect stakeholders,” said Andy Kennaugh, CEO of TCM Living Group.
“We are exploring all options to secure the future of these respected brands.”
UK growth projections lagging behind Asia
TCM Corporation PLC, the parent company, acquired both firms to expand in the UK market.
However, it cited a deteriorating investment climate since 2013, driven by economic pressures, political instability and post-Brexit fiscal policies.
UK GDP growth is projected at 1.0-1.2% for 2025, lagging behind Asia Pacific’s 4.7% forecast.
Alstons Upholstery, another TCM Living Group business, remains unaffected and continues normal operations.
Ashley Manor and Alexander & James said they will maintain operational while assessing options, aiming to fulfil orders and support customers.
The companies said they will keep stakeholders updated.
TCM Living says in its LinkedIn profile that it employs between 500 and 1,000 people and has “the UK’s largest sofa companies under its umbrella – Ashley Manor, Alexander & James, AMX Design and Alstons.”
