UK bed and upholstery firm on brink of administration as it confirms 'difficult decision'
The company has been making beds for over 150 years.
A UK bed and upholstery firm is on the brink of administration due to the “financial challenges” it has faced over the years. Airsprung, in Trowbridge, has issued an internal notice on April 22 where it said that it was working with “key stakeholders on options to preserve the company.”
Airsprung Group plc and Airsprung Furniture Ltd said that they have filed a Notice of Intention to appoint administrators (NOI). A notice of intention to appoint administrators signals that a company plans to bring in administrators if it cannot resolve its financial difficulties. The measure is intended to provide short-term “breathing space” to explore options and take corrective action. Airsprung has not entered administration yet, reports Wiltshire Times.
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The news outlet reports the internal notice reading: “As you may be aware the company has been facing financial challenges because of difficult trading conditions over a sustained period alongside a significant pension scheme deficit. In recent times, the company has been exploring all its options.
“However, the business faces a short-term liquidity issue and as such the Directors have filed for a notice of intention to appoint administrators for Airsprung Group plc and Airsprung Furniture Limited.
“The Directors are working with key stakeholders on options to preserve the Company.
“Whilst these options are being progressed, the filing of a NOl provides the directors and the business some breathing space to see these options through.”
Airsprung Group PLC said the directors of Airsprung Group plc and Airsprung Furniture Limited have made the “difficult decision” to file a notice of intention to appoint administrators.
They told the publication: "There have been significant pressures faced in the sector, all of which have impacted Airsprung’s trading performance and have affected the cashflow position of the company.
"The directors are working with key stakeholders on options to preserve the company. Whilst these options are being progressed, the filing of an NOI provides the directors and the business some breathing space to see these options through.
"We will not be able to provide live updates on this process."
The company employees will be paid on April 24 and April 28, it confirmed.
