Independent home furnishings retailer Barretts of Woodbridge owed creditors almost £250,000 ahead of entering administration.
Lee De’ath and Tom Gardiner, both of BTG Begbies Traynor (Central) LLP, were appointed as joint administrators of Barretts of Woodbridge Limited on 7 May 2026.
Ahead of entering administration, the company was about to enter into its traditionally quietest months of April and May, and cashflow forecasts indicated that the company would have difficulties in meeting its immediate liabilities including staff payroll.
The business, which originally started in 1969 and was situated at 40 Thoroughfare in Woodbridge, Suffolk, had experienced a loss of £47,000 for the year ended 31 March 2025 and management accounts for the period to 31 March 2026 indicated further losses of £12,000.
The directors attribute these losses to changes in customer buying habits and general economic pressures on households leading to less high street sales.
At that time, the company was not suffering from any significant creditor pressure but initiated advice on insolvency options as it was concluded the business could not continue to trade in the long term.
The company commenced a process of further discounting stock to drive sales whilst also actively seeking a potential purchaser for the business. Whilst there was some interest after initial due diligence such interest fell away.
The company therefore commenced a closing down sale to maximise realisations in respect of its stock. Upon entering administration, the company ceased trading with all 19 staff made redundant.
With regards to creditors, preferential employee claims of £4,255 are expected to be repaid in full, while the HMRC, owed £63,000, is expected to suffer a shortfall of £22,000. Unsecured creditors are owed a combined total of £217,000, which include a number of four-figure sums owed to the trade. It is expected that creditors will suffer a shortfall of £245,000.
