Dormeo UK Limited (07440398): administration
- Status
- Administration ended
- Administration began
- 2023-02-23
- Administrators' firm
- Mazars
- Incorporated
- 2010-11-15
- Location
- London
- Industry
- 46470 Wholesale of furniture, carpets and lighting equipment
Why it went into administration
- Cash flow / liquidity pressure
- COVID-19
- Weak consumer demand
- Funding withdrawn / unable to refinance
- HMRC / tax arrears
- Loss of a key customer, supplier or contract
- Sustained trading losses
- Brexit
From the administrators' statement
Incorporated in 2010, DOUK was a direct to consumer retailer (online and telesales) and wholesaler of quality Italian-designed, European made mattresses with an estimated UK market share of c. 4%.
Despite being historically profitable, DOUK was adversely impacted by Brexit, COVID-19 and the Administration of a major customer, Ideal Shopping Direct Limited (Ideal World), in April 2022 resulting in significant losses and a build up of creditors, including HMRC during 2022. Despite receiving further shareholder and significant Bank funding in mid-2022, consumer confidence stresses meant trading remained challenging with continuing working capital pressure to service media advertising commitments which underpin the Company's underlying business model.
The Company employed 27 members of staff and traded from leasehold premises in High Wycombe, Buckinghamshire with the majority of warehousing, customer service, telesales and distribution functions being outsourced.
Administrators' statement of proposals (2023-03-10) · Companies House register