Blair Nimmo and Alistair McAlinden of KPMG LLP were appointed as Joint Administrators of First Furnishings Limited (“FFL”)
Blair Nimmo and Alistair McAlinden of KPMG LLP were appointed as Joint Administrators of First Furnishings Limited (“FFL”) on 18 October 2018 by the company’s director.
FFL ceased trading shortly prior to the appointment of the Joint Administrators.
Established in 2004, FFL supplied and installed furniture, flooring and white goods to local authorities, housing associations, letting agents and charities. FFL operated from leased head office and warehouse premises in Broxburn, West Lothian and leased warehouse premises in Glasgow.
The company 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.
At the time of the Joint Administrators’ appointment, the firm employed 57 employees; 27 at its base in Broxburn and 30 in Glasgow. Unfortunately, all staff have been made redundant following the Joint Administrators’ appointment.
Blair Nimmo, Joint Administrator and 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.”
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and territories and has 200,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.