By Beverly Rademacher

Copyright expressandstar

Workers at the company on the Woodside Industrial Estate in Pedmore Road, one of the UK’s leading sofa manufacturers, were told the sad news on Monday afternoon (September 15).

“We’re gutted, it’s such a shame,” one of the workers told the Express & Star.

The employee, who has worked for the company for nearly 25 years, said: “Some people have been there nearly 30 years.”

The firm, which employs more than 100 people at its Midlands’ based factories, head office and showrooms, had filed a notice of intention to appoint administrators amid challenging conditions towards the end of August with workers kept on trying to fulfil orders and support customers amid hope a buyer would be found.

Andy Kennaugh, CEO of TCM Living Group, previously said every option was being explored to try to safeguard the future of Ashley Manor, and import business Alexander & James (also part of the TCM Living Group), and he described both names as “respected brands in the UK furniture market”.

One of the affected workers at Ashley Manor, in Dudley, who asked not to be named, however, said: “I think they’ve been stringing us along, saying there were potential buyers but I don’t think it was the truth.”

He added: “I thought there was hope when they gave us an extension last Wednesday when we had a meeting.

“But we were told on Monday in a meeting that lasted about 15 minutes that unfortunately nobody has come forward and the firm would be in administration from 5pm.

“We’re all gutted.”

He added: “I said my goodbyes to people I’d worked with for years and we went to the pub and just sat there crying into our beer.”

Ashley Manor has 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 and it was thought the companies would have made an “attractive prospect for buyers”.

Staff, however, were told it was the end of the road for Ashley Manor.

No update has yet been made regarding Alexander & James.

TCM cited “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” when it announced it had filed a notice of intention to appoint administrators just under three weeks ago.

Trevor Binyon, partner at Opus Restructuring & Insolvency, said at the time that the economic climate has been “particularly challenging for all businesses in the furniture market” with cost of living pressures having “a direct impact on recent sales volumes due to the tight squeeze on discretionary spending for all consumers”.

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.

Business bosses said three weeks ago that it had been operating in a climate that has become “less investor friendly” with “unfavourable fiscal policies”.

Pimol Srivikorn, chairman of TCM Corporation PLC, said in a previous statement: “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.”

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