Sofa Workshop on verge of administration

Sofa Workshop, which used to be owned by MFI, is on the verge of administration as it becomes the latest casualty of the economic downturn.

In a statement, the company said it has filed intent to appoint an administrator as a protective measure while discussions continue to refinance the business.

New Heights acquired the company from MFI in October 2006 for just under £2 million. New Heights appointed an administrator in May 2007, while MFI collapsed late last year.

It is believed that Sofa Workshop, which has 31 stores, has lined up recovery specialist, Leonard Curtis, if rescue talks fail.

Furniture retailers have had a difficult time of late, one reason is the downturn in the housing market since a lack of buyers has resulted in low demand at these types of stores.

In the last year alone, furniture and furnishings retailers including Ilva, Rosebys and Beds Direct have all collapsed.

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