Artwork suppler to the furnishings industry Shh Interiors has been sold in a pre-pack deal across three entities after entering administration.
Megan Singleton and M J Colman, both of Leonard Curtis, were appointed as joint administrators of Shh Interiors Limited, trading as SHH Interiors, Fab Home Interiors & 1Wall, on 24 March 2026.
Detailed in a newly filed report on Companies house, ahead of entering administration, the company experienced steady growth in its early years as it developed relationships with a number of key customers and expanded its product range.
At its peak, the business operated seven retail stores alongside its wholesale and manufacturing activities. However, in recent years the wider retail environment has become increasingly challenging, with many retailers experiencing mounting pressures from subdued consumer spending, rising operating costs and wider economic uncertainty.
These factors had a knock-on effect on suppliers across the sector, including the company, which was also impacted through its own retail operations. The company was also significantly affected by the COVID-19 pandemic, which resulted in a prolonged recovery period for the retail sector.
This was followed by the ongoing cost of living crisis, which further reduced consumer spending. In addition, wider geopolitical instability, including the war in Ukraine and associated global supply chain disruption, contributed to significant increases in energy prices and the cost of raw materials.
During this period, the business also experienced substantial increases in operating costs, including materials, labour, energy and logistics. These combined factors placed considerable strain on margins and the company’s working capital.
The directors took a number of steps to mitigate these pressures, including reducing overheads, reviewing staffing levels, improving operational efficiencies and exploring options to refinance or restructure the business. Despite these efforts, trading conditions remained difficult, and margins continued to be under pressure.
The company also sought to sell certain properties it owned to large national companies as part of a strategy to improve its financial position. Although there was interest from potential purchasers, the sales process proved lengthy and required additional work to progress. During which timeframe, the company’s financial position deteriorated further.
In recent months, the company has experienced increased financial strain, including pressure from creditors and HMRC liabilities. Coupled with the ongoing cost pressures and reduced demand, it ultimately made it increasingly difficult for the company to continue trading in its existing form.
The company, which had seen turnover drop from £5.9m for the year ended 31 December 2022 to £5m in 2024, with pre-tax profit amounting to £26,880, contacted Leonard Curtis to conduct a review of the business and initiated a marketing process. This resulted in one offer from an unconnected party for £1. This was deemed as not feasible to accept.
A joint offer from three connected parties was also tabled. The offer collectively totals £60,000 detailing a split of the company’s assets to be acquired from three separate companies; Fab Preston Ltd – offering £21,750, Lake Life Bowness Ltd – offering £12,500, and Home Edit Trading Ltd – offering £25,750.
Upon entering administration, the company assets were sold to the connected party offers detailed above, with the full amount received following the completion of the sale. Two of the three businesses were newcos, which included Fab Preston Ltd – incorporated on 19 February 2026, and Home Edit Trading Ltd – incorporated on 25 February 2026, while the other, Lake Life Bowness Ltd has been established since 3 April 2023.
Details of each sale saw Fab Preston Ltd acquire assets such as goodwill, IP and stock held at Preston as well as and 50% of stock held at Unit 2 Kincraig Court in Blackpool. Lake Life Bowness Ltd acquired stock held at Kendal and Bowness, as well as the other 50% of assets held at Unit 2 Kincraig Court. Finally, Home Edit Trading Ltd acquired stock held at its Blackpool store, as well as website and social media assets.
As for creditors, unsecured creditor claims totalled £1.4m, which included £296,000 owed to employees, £16,000 owed to consumers and £666,000 owed to connected creditors. It is expected that creditors will suffer a shortfall of £1.4m.
