By Beverly Rademacher

Copyright expressandstar

The company, based in Pedmore Road, Dudley, which employs more than 100 people, went into administration last night.

Employees, some of whom had worked there for 20 to 30 years, were left “gutted” at the news.

British designed import business Alexander & James Sofas, which like Ashley Manor is owned by TCM Living Group, has also gone into administration it has now been confirmed.

Buyers had been sought to take on the well-known brands after the companies filed a Notice of Intention to Appoint Administrators on August 27, but an almost three-week search to secure a purchaser proved unsuccessful.

TCM Living Group said despite comprehensive marketing efforts throughout a moratorium period no buyers could be secured. The company said all parties that expressed initial interest ultimately withdrew, citing ongoing economic volatility and persistent industry headwinds as prohibitive factors for acquisition.

Opus Restructuring & Insolvency has been appointed as administrators and will oversee the administration process.

Both businesses ceased trading on Monday (September 15), with workers told the sad news in a meeting at lunchtime.

Andy Kennaugh, CEO of TCM Living Group, said: “This has been an extremely difficult decision and one we deeply regret having to make.

“Despite our intensive efforts over recent weeks and the support we’ve received, we have exhausted all viable options for securing new ownership that would preserve these businesses.

“Both Ashley Manor and Alexander & James have been well-respected brands in the UK furniture industry, and we are committed to handling this process with dignity whilst ensuring all stakeholders receive the support they need.”

Colin Wilson, managing 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. It is unfortunate that a buyer could not be secured in this instance and we now enter the process of realising the company’s assets for the benefit of creditors.”

TCM Corporation PLC, the parent company of 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, TCM’s premium import business of British designed sofas manufactured in Thailand and distributed across the UK and overseas, built a strong reputation for combining British design heritage with international production capabilities.

The demise of the firms has been blamed on 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.

Their closure also reflects broader concerns at TCM Corporation PLC regarding the deteriorating UK investment climate, bosses have said. This has shifted significantly, the company has said, becoming less investor-friendly due to persistent economic pressures, political instability, regulatory changes and market volatility – with unfavourable fiscal policies including post-Brexit tax adjustments and reduced incentives for foreign direct investment adding to the problems.

Pimol Srivikorn, chairman of TCMC PLC, said: “The decision to exit these UK operations was not made lightly, but reflects the fundamental shift in Britain’s economic landscape since our initial investment over 10 years ago.

“We have witnessed first-hand how regulatory uncertainty, fiscal policy changes, and persistent economic headwinds have created an environment where even well-established businesses with strong brand recognition cannot attract viable investment for continuation.

“This outcome, while disappointing, reinforces our strategic pivot towards markets that offer greater stability and growth potential. Our thoughts are with the dedicated employees who have contributed so much to these brands over the years.”

The companies are working with ERA Solutions, employee rights specialists, to ensure affected employees receive comprehensive information support through the government’s Redundancy Payments Service, and employees have been promised support services to help with the difficult transition.

Opus Restructuring & Insolvency will now oversee the orderly wind-down of both businesses. The administrators will work to settle outstanding obligations where possible whilst managing the administration process in accordance with insolvency procedures.

Customers with outstanding orders and suppliers with queries should contact the administrators directly. Opus said details will be made available through the companies’ websites and official channels.

Alstons Upholstery, which operates as a separate and successful business within the TCM Living Group portfolio, is not included in the administration process. The company is completely unaffected and continues to trade normally.