An online retailer, based in Bradford, selling high-end “shabby chic” furniture and accessories has gone into administration.
Luxury Home Furniture Limited, trading as “Shabby”, suffered cashflow problems as a result of the pandemic, supply chain delays, cost increases and other issues.
Steven Wiseglass, a director at Inquesta Corporate Recovery & Insolvency, has been appointed administrator.
The business supplied sofas, tables, chairs, lighting, ornaments, candles and decorative jars and had sales of £2m in its last financial year.
Wiseglass said Shabby expanded during the first lockdown but then became severely hit by shipping delays, increased operating and import costs, the loss of its biggest UK supplier, adverse customer reaction to a hike in prices, creditor pressure and, ultimately, falling sales.
He added: “The directors tried to keep the business afloat but unfortunately this combination of factors had a devastating impact on its viability and they were ultimately unable to save it.
“The business has now ceased trading and we have been appointed as administrator to find the best outcome for creditors.
“The process to seek a buyer for the brand, website, goodwill and remaining stock is under way.
“Chartered surveyors Walker Singleton has been instructed to market the assets and inquiries from potential purchasers should be directed to its advisory team in the Leeds office.”
He said Shabby has insufficient cash to fulfil outstanding orders or to provide refunds to customers awaiting goods.
Affected customers should contact their credit or debit card provider or payment platform to arrange a chargeback where possible.
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