Ultra enters administration after being hit by Tesco Direct closure plan
Upholstery manufacturer Ultra Furniture has entered administration following the announcement that Tesco Direct is to close. The business accounted for over 70% of Ultra’s sales.
Ultra has worked with some of the UK’s best known upholstery retailers and high street brands for over 30 years.
Based in Dudley in the West Midlands, the company also has a dedicated production site in Kingswinford that employs 160 people.
Steven Muncaster of Duff & Phelps has been appointed as administrator. Speaking about the impact of the closure of Tesco Direct, he said: “The directors of the business are clear that at this stage that the business as it currently stands cannot continue to trade following the loss of such a major customer.”
While Duff & Phelps is continuing to market the business with the aim of finding a buyer, Muncaster said: “We have to stress that this is a hugely challenging market undergoing consolidation and cost pressures. We cannot confirm at this stage what will happen to the two sites and the current employees but we will be keeping people informed at every stage of the process.”
Tesco announced last month that it will close the non-food website in July after a review found there was no route to profitability for the loss-making business. The site sells a range of general merchandise such as technology, furniture, homewares, clothing and toys for delivery or collection.
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