239 JOBS LOST AS FIRM FOLDS
FAMILY-RUN FURNITURE-MAKER GOES INTO ADMINISTRATION AFTER SUFFERING A CATASTROPHIC COLLAPSE IN ORDERS
ONE of Wales’ oldest furniture manufacturers has gone into administration with the immediate loss of more than 200 jobs, in a move blamed on a “catastrophic” collapse in orders since July.
Merthyr Tydfil-based and familyowned Triumph Furniture, which was established in 1946 and operated from two sites in Merthyr and Dowlais, is now in the hands of joint administrators Huw Powell, Katrina Orum and Paul Wood from the Cardiff office of insolvency firm Begbies Traynor.
Efforts to secure backing of a major customer and new funding for a restructuring of the business failed. Attempts were also made to sell the business as a going concern.
The administration has resulted in 239 job losses. A small team of 13 have been retained to support the administration process.
Chief executive of Triumph Furniture Andrew Jackson said: “The family is devastated by this appalling outcome and are extremely concerned for the welfare of all Triumph employees and their families at this terrible time.
“The business has suffered a rapid and catastrophic collapse in orders since the middle of July, which has been impossible to recover from, despite every effort. Triumph has enjoyed incredible loyalty and support from the committed people of Merthyr and the surrounding valleys, which has been a key element of our success and longevity.
“All connected with the business over these years should be very proud of what has been achieved.”
The business supplied more than 600 furniture sellers, as well as being a supplier to central government.
Mr Powell, partner with Begbies Traynor, in Cardiff, said: “It is especially sad to see such a prominent business fail when there are so many redundancies involved.
“We know this will be devastating news for those concerned.
“Attempts were made to secure major customer backing and additional funding to support a restructure or to sell the business as a going concern, but due to the speed at which order levels reduced, these efforts ultimately proved unsuccessful before funding ran out. We are now working with all staff affected to help them access support from Careers Wales via the Welsh Government’s ReAct programme.”
In its latest audited accounts submitted to Companies House, for the financial year to June 3, 2018, the business generated revenues of £18.3m and a pre-tax profit of £336,000.
The vast majority of its sales were in the UK domestic marketplace, with £1.1m of revenue generated from clients in mainland Europe. At the time the business had net assets of £1.7m.
The Department for Work and Pensions said there will be “tailored support” for those affected.
A spokesman said: “We know that this is a very worrying time for TBS Triumph staff, as they wait to hear from the administrators.
“We want to reassure all those affected that the Jobcentre Plus Rapid Response Service will be working alongside the Welsh Government, Careers Wales, other partners and local employers, so we can provide tailored support and options for affected staff.”
Dawn Bowden, AM for Merthyr Tydfil and Rhymney, said: “I am deeply saddened at this news and the loss of so many jobs.
“I was recently made aware of problems in the company and had put them in touch with the Welsh Government.
“Sadly it seems the company could not be saved. I am currently in contact with the Economy Minister Ken Skates in order that those made redundant can have advice and support made available to them.”
Merthyr and Rhymney MP Gerald Jones said: “I have raised the situation with Triumph with UK government ministers and the Secretary of State for the Department for Work and Pensions a number of times, and Dawn Bowden AM and I will continue to do whatever we can to support the company and its staff.”
Kevin O’Neill, leader of Merthyr Tydfil County Borough Council, said: “The council is currently working in partnership with Job Centre Plus to host a recruitment day specifically for those affected by this closure. The recruitment day will take place this Thursday.”