The Floor Room Limited (13925555): administration
- Status
- Administration ended
- Administration began
- 2024-08-09
- Administrators
- Zelf Hussain, Peter David Dickens, Adam Seres
- Administrators' firm
- PwC
- Incorporated
- 2022-02-18
- Location
- Leeds
- Industry
- 47530 Retail sale of carpets, rugs, wall and floor coverings in specialised stores
Why it went into administration
- HMRC / tax arrears
- Property / lease costs
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Cyber attack / IT failure
From the administrators' statement
TFR was a B2C flooring Company, primarily operating out of 34 concessions located in John Lewis stores as well as from one standalone store based in Tottenham Court Road (which was sublet from CPR) and online. The Company was incorporated on 18 February 2022. The Company is part of the Nestware Holdings Limited Group (as shown in the Group structure at Appendix A) which contains Nestware Properties Limited, CPR Realisations Limited (formerly Carpetright Limited (CPR) - in administration), Tradechoice Distribution Limited (B2B carpet/flooring Company), and Keswick Flooring Limited (B2C flooring Company). The Nestware Group is owned by the Meditor Group.
TFR sold various floor coverings including vinyl, wood flooring, laminate and carpet. Each year, TFR paid approximately £4m to CPR for various services. These services included central head office costs (like software licences and insurance), rent and rates for the Tottenham Court Road location, and warehousing costs (covering distribution, stock storage and waste management). As a result, TFR relied heavily on CPR for its infrastructure and operational needs. In addition c.30% of its products for customers were sourced via CPR.
In April 2024 CPR was the subject of a cyber attack leaving the business unable to trade online or in-store for just over a week. This added to the already existing financial challenges faced by the business. At the CPR level, the cash outlook continually worsened leading to the engagement of PwC in May 2024 to provide cashflow forecast monitoring support and comment on potential cash management opportunities. As the financial position further declined, PwC was additionally engaged to explore a solvent turnaround plan for CPR and associated activities to provide funding options for that plan.
Administrators' statement of proposals (2024-10-03) · Companies House register