Dudley furniture firm facing huge challenges files 'notice of intention' to appoint administrators

The company, one of the UK’s leading sofa manufacturers, operates from premises on the Woodside Industrial Estate in Pedmore Road and employs more than 100 people at its Midlands' based factories, head office and showrooms.

The notice of intention also applies to import business Alexander & James Sofas, which is also part of the TCM Living Group along with Ashley Manor.

TCM Living Group has said it intends to seek restructuring options amid challenging market conditions.

The notice is a protective measure which aims to provide Ashley Manor and Alexander & James Sofas with a moratorium period to explore strategic restructuring options.

A statement issued by TCM states: "The decision follows sustained pressure across the UK furniture manufacturing and import sectors driven by inflationary increases in raw material costs, international shipping disruptions, price volatility, higher labour expenses and reduced consumer demand for big-ticket items amid the cost-of-living crisis."

The notice of intention provides breathing space from creditor action while the companies and their advisers, Opus Restructuring & Insolvency, assess all strategic options which include a potential sale of the businesses or alternative restructuring arrangements.

Andy Kennaugh, CEO of TCM Living Group, said: ""This has been an extremely difficult decision but one we believe is necessary to protect the interests of all stakeholders whilst we navigate these prolonged market challenges.

"Both Ashley Manor and Alexander & James are respected brands in the UK furniture market and we have been exploring, and continue to explore, every viable option to safeguard their future."

Trevor Binyon, partner at Opus, added: “The current economic climate is particularly challenging for all businesses in the furniture market. The cost-of-living pressures have had a direct impact on recent sales volumes, due to the tight squeeze on discretionary spending for all consumers. A leading manufacturer - with a wide range of furniture collections, a British-designed import business, highly experienced and skilled staff, and a modern manufacturing facility - makes for a very attractive prospect for buyers.”

TCM Corporation PLC, the parent company TCM Living Group, acquired Ashley Manor and Alexander & James as part of its strategic expansion in the UK furniture sector. 

Ashley Manor has long been a significant employer in UK furniture manufacturing, and Alexander & James has built a strong reputation for combining British design heritage with international production capabilities.

Alstons Upholstery, which operates as a separate and consistently successful business within the TCM Living Group portfolio is not included in this restructuring process and Alstons' operations remain unaffected, with the company continuing to trade normally.

The challenges facing Ashley Manor and Alexander & James reflect broader concerns at TCM Corporation PLC, regarding the deteriorating UK investment climate, TCM's statement said - blaming a climate that has become "less investor friendly" and "unfavourable fiscal policies".

It stated: "Since entering the UK market in 2013, the investment environment has shifted significantly. This is predominantly due to the climate becoming less investor-friendly due to persistent economic pressures, political instability, regulatory changes and market volatility. 

"Compounding these issues are unfavourable fiscal policies which include post-Brexit tax adjustments and reduced incentives for foreign direct investment which have eroded the attractiveness that drew us to the UK in 2013.

"Current forecasts show UK GDP growth of only 1.0 to 1.2 per cent in 2025,and similar modest growth in 2026, which is significantly below historical averages and markedly lower than Asia Pacific projections. In contrast, the Asia Pacific region presents a markedly more attractive investment landscape."

Pimol Srivikorn, chairman of TCM Corporation PLC, said: "We entered the UK market in 2013 with strong optimism for its potential, drawn to what was then a highly investor-friendly environment. However, the landscape has since deteriorated into a far more challenging arena marked by persistent economic uncertainties and significantly reduced incentives for foreign investment.

"Despite these challenges, we remain grateful for the UK's rich design heritage, which has inspired so much innovation, and for the exceptional people we have had the pleasure of working with - our dedicated employees, valued customers, and trusted suppliers.”

Both Ashley Manor and Alexander & James will continue operating over the coming weeks and working to fulfil current order books and support customers while a path forward is sought. This includes the possibility of a sale to help secure the future of the brands.

Customers, supplies and partners will be kept informed as the situation develops, TCM's statement added.