Furniture retailer Raft was sold in a pre-pack deal after collapsing into administration.
Nicholas Simmonds and Chris Newell, both of Quantuma Advisory Limited, were appointed as joint administrators of Raft Limited on 14 July 2025.
In the build up to its administration, the company failed largely due to debts accumulated over the past decade and the existing business model no longer being able to carry the burden of these debts.
Despite renegotiating leases, restructuring staff, and cutting overheads, the weight of these historical obligations has outpaced the business’s ability to recover. It became apparent that it could not continue in its current form, so the Directors approached Quantuma Advisory for advice.
A review of the company’s cash-flow revealed that there would be insufficient working capital available to allow the company to continue to trade in the medium term in order for a purchaser to be found. It was deemed that there was no other option than to enter administration.
Upon appointment of administrators, a pre-pack sale of the company’s business and assets was completed for a sum of £190,000 to Raft Furniture Limited, a connected company with the common directors.
On the date of the sale, £24,800 was received with the remaining balance of £165,200 to be paid as instalments of £9,800 over a period of 17 months.
With regards to creditors, preferential creditor, the HMRC, is owed £552,000, while unsecured creditors are owed a combined sum of £509,000. It is expected that creditors will suffer a shortfall of £943,000.
