Almost 60 jobs lost as social housing furniture supplier collapses

Administrators from KPMG were called in after First Furnishings Ltd (FFL) incurred substantial losses.

Established in 2004, FFL supplied and installed furniture, flooring and white goods to local authorities, housing associations, letting agents and charities. The company operated from leased head office and warehouse premises in Broxburn, West Lothian and leased warehouse premises in Glasgow.

FFL generated a turnover of £5.8 million in the year to 31 March 2018, with the majority of revenue relating to contracts with local authorities. However, despite significant income growth in recent years, an increased cost base, coupled with contractual obligations, forced FFL to incur substantial losses.

All 57 staff have been made redundant.

Blair Nimmo, global head of restructuring for KPMG, said: “Unfortunately, while FFL was a leading operator in its field, the business was unable to continue trading in light of an increasing cost base, which, combined with contractual obligations, gave rise to acute cash flow difficulties.

“As a result of the difficult financial position facing the company, we had no choice but to make all employees redundant. We will be working with affected employees and relevant government agencies to ensure a full range of support is available.

“We are also exploring the possibility of securing a sale of the company’s business and assets and would encourage any interested parties to contact us as soon as possible.”