London: Interior Design

The nationwide insolvency practitioners SFP has rescued a well-established interior design company, retaining important contracts, saving jobs, and ensuring a maximum return to creditors.

SFP was appointed Administrators of Interiors Europe Limited (IEL) after IEL’s cashflow was seriously impacted by several factors, including the loss of one its major contracts. A Company Voluntary Arrangement (CVA) that IEL had earlier entered into subsequently failed, and SFP stepped in to save the business.

Established as an interior decoration company in 1998, by 2001 the Owner and Director, Peter Field had established a strong client base and a turnover in excess of £1 million. By 2004 the business’ turnover had peaked at £2.1m.

The owner further restructured, creating specific businesses to offer dedicated services including maintenance and exterior decoration services. Despite these actions, and with mounting debts, the owner sought advice and entered into a CVA in September 2010. IEL was unable to complete the CVA however, and a petition to wind the business up was later served against it.

SFP’s Simon Plant and Daniel Plant – both licensed members of the Insolvency Practitioners’ Association – were subsequently appointed as Joint Administrators on 2nd February 2015, following the failure of the CVA. They saw an opportunity to restructure the business, maximising a return to creditors and salvaging the business:

“IEL was part of a group structure that had the ability to continue trading if it was restructured,” says Simon Plant, Joint Administrator.

“Following our appointment we have been able to regularise the position of the company and enter into an agreement with Interiors Europe TM Limited. Many of the company’s existing customers were contacted to help the continuity of the business and protect goodwill that salvaged certain trading relationships.  A dividend is anticipated to unsecured creditors in this matter, which is a pleasing outcome.”