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Sofabed maker becomes a victim of UK recession
14.01.09
Another sofa company has just gone under, victim of the recession and tumbling pound. Europa Sofabeds made sofas for retailers like Land of Leather — which is itself in administration.
Europa has made all but five of its 180 staff redundant.
“Over the past year the firm has been hit by rising costs and the falling value of the pound,” says administrators Begbies Traynor.
“With many of its product components imported from the Euro zone the recent changes in exchange rates have crippled the business.”
Begbies will now try to recover what it can from debtors and sell-off remaining stock on the cheap. Other furniture brands that have gone bust because of the crunch include: MFI, The Pier, ScS Upholstery, Ilva and Floors 2 Go and Sofa Workshop.
Retailers suffered their worst Christmas in decades, figures this week show.
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ohh what a sad story! i hate all this news of my favourite companies going into administration. it's very unsettling! and just the other day, a friend told me mcdonalds would be next! i just thought to myself that if that happens, i'll REALLY start worrying! they are one of the biggest companies in the world and although its a franchise, i'm sure it'll be like the domino effect, if one goes down, they'll all go down!
i sincerely hope this doesn't happen!
- Anon, London, UK
