Administrators to sell assets of Glasgow furniture business

Trade Style Cabinets has gone into administration, having been hit by the recession and the housing market downturn. Up to 50 of the 80 staff have been made redundant.

Blair Nimmo and Tony Friar of KPMG have been called into the Scottish furniture business, and are working with the remaining employees to realise the main assets.

Torwood Timber Systems, an associated company, went into administration in late March. The downturn in the housing sector and rising costs of credit proved to be detrimental to the business.

About half of its 34 members of staff had to be let go. The administrators Nimmo and Friar from KPMG are also working with the remaining employees to sell the assets.

Of Torwood, Mr Nimmo said: "In recent months, a few of the company's suppliers have reduced credit terms, as credit insurance has become more difficult to retain."

Founded in 2003, Torwood reported revenues of £5m for the year to 31 January 2009. Trade Style recorded sales of £5.5m for the same period, down by 30 per cent on the year before.

Glasgow-based Trade Style manufactures kitchen, bathroom and bedroom furniture, and supplies independent retailers and house builders. Torwood, based in Livingston, is a kit house producer.

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