Chris Bristow, a business rescue expert at Real Business Rescue, talks about how to decelerate financial decline and revive company health.
The burgeoning industry of furniture retail is rich with opportunities stemming from changing consumer demands and technological advances. With the transition to remote working in full flow and environmentally conscious furniture in growing demand, the industry remains commercially strong, despite weathering a storm of challenges.
Most of the challenges that have befallen the furniture industry have equally blighted other industries; however, the furniture retail industry has been particularly hard-hit due to its labour-intensive nature and high dependence on supply chains. With costs rising across the board, including import fees, more furniture retailers are feeling the pinch and descending into financial distress.
If the risk of insolvency is prevalent, actively mitigate the impact by following our five-step roadmap to financial recovery, writes Chris Bristow, a business rescue expert at Real Business Rescue.
Road to recovery
At the time of writing, and according to a recent insolvency digest,  43 furnishing businesses owed over £50 million to creditors. This signals a demanding playing field for furniture retailers as more operators see their financial resources run dry. Overdue payments to suppliers, lenders, and employees can trigger a chain reaction that can grind operations to a halt and invite creditor pressure.
If the risk of insolvency is unmanaged, the effects can be unforgiving. From unfulfilled orders, job redundancies to strained professional relationships, the damage can be irreversible if professional support is delayed.
According to the Big Furniture Group’s insolvency register which records retail company insolvencies and administrations, around 10 furniture retailers entered Creditors’ Voluntary Liquidation (CVL) and five entered company administration in October 2025. This shows a deteriorating picture of financial health as furniture retailers grapple with high inflation and changing consumer needs.
Back to basics – Bring financial reporting up to date for added transparency on company finances. This lifts the veil on the value of company assets and liabilities which can provide clarity on financial health. Without this insight, the health of the business can drastically snowball and result in the collapse of company operations and valuable client bases.
Damage control – Creditors hold the power to shut down a business if payments are persistently overdue by issuing a winding up petition. Keeping the lines of communication open can drastically reduce the chances of creditors pursuing legal action. If debts are likely to be negotiated following intervention from a licensed insolvency practitioner, a responsive creditor will be more beneficial than a disgruntled one. Engage in active efforts to satisfy creditors to protect brand reputation and business value. This can minimise operational disruption and maintain the appeal to potential buyers if a business sale or pre-pack administration is likely to be considered.
Use the expert – An accountant or finance team can support a financial health check. However, if the business is severely cash deficient and no longer able to fulfil liabilities, this signals an urgent need for a licensed insolvency practitioner. An insolvency practitioner can secure immediate breathing space and alleviate financial strain by negotiating debts with creditors, restructuring operations or entering the company into administration.
Actionable advice – The road to recovery starts with actionable advice. If payments are long overdue or persistently missed, expect creditors to turn the dial up on creditor pressure which may involve a winding up petition. Once a winding up petition is issued, time is of the essence as there is a limited window during which a winding up petition can be contested. If uncontested, the company enters compulsory liquidation which strips company directors of their control.
Rescue roadmap – If there is rescue potential, this must be exhausted to secure a lifeline and a second chance of survival. A rescue strategy may take one of many routes, such as company administration, pre-pack administration, a company voluntary arrangement or company restructuring.
While some methods can secure a textbook rescue, this depends on factors such as operational complexity, debt value, asset value, personal guarantees, staff, investor appetite and consumer demand. Rescue methods are highly tailored to secure the best outcome for creditors, as is the duty of company directors.
The first port of call entails diffusing tension between creditors by addressing company debts and formulating a repayment plan. Once an action plan is devised to handle creditors and address overdue payments, a strategy to secure the long-term success of the business is laid out.
Turning a new chapter
To decelerate financial decline, early advice must be sought – this is the golden rule when overcoming insolvency. Furniture retailers on the brink of insolvency may be fearful of compromising the integrity of their brand and subsequently, their customer base. Early intervention can avoid such circumstances, as the insolvency practitioner can take the reins of the business and steer the business to shelter.
From shedding the business of assets to raise funds, working behind the scenes to finetune efficiencies or restructuring company debts, the rescue paths available to furniture retailers are aplenty.
