A UK bed and upholstery firm with a history spanning more than 150 years is on the verge of administration. Airsprung, based in Trowbridge, has issued an internal notice stating that it has had to make a "difficult decision" as a result of ongoing "financial challenges."
Financial difficulties lead to administration notice
The company, which has been manufacturing beds for over a century and a half, filed a Notice of Intention to appoint administrators (NOI) on April 22. This legal step is taken when a business anticipates the need to bring in administrators if it cannot resolve its financial troubles.
In the internal notice, Airsprung explained that it has faced "financial challenges because of difficult trading conditions over a sustained period alongside a significant pension scheme deficit." The directors have been exploring all available options but are now confronted with a short-term liquidity issue.
What the notice means
Filing an NOI provides the company with temporary "breathing space" to continue discussions with key stakeholders and pursue options to preserve the business. Airsprung has not yet entered administration, and the directors are actively working on potential solutions.
A spokesperson for Airsprung Group PLC said: "There have been significant pressures faced in the sector, all of which have impacted Airsprung's trading performance and have affected the cashflow position of the company. The directors are working with key stakeholders on options to preserve the company. Whilst these options are being progressed, the filing of an NOI provides the directors and the business some breathing space to see these options through."
Employee payments confirmed
The company confirmed that employees will be paid on April 24 and April 28. However, it stated that it will not be able to provide live updates on the process.
Airsprung is a well-known name in the UK bed and upholstery industry, and its potential administration highlights the challenges facing the sector amid difficult trading conditions.
