Mattress manufacturer Visco Therapy was sold in a pre-pack deal after entering administration.
Lee Morris and John Thompson, of Marshall Peters, were appointed as joint administrators of One Holding Limited, trading as Visco Therapy, on 16 March 2026.
Upon appointment, a pre-packaged sale of the company’s business and assets was completed on 20 March 2026 to Swann Sleep Limited, a connected company by way of common directorship.
The sale was for a total consideration of £70,000, with £20,000 received upon completion of the sale, while the remaining £50,000 is to be paid in five monthly instalments of £8,333.33 and then a final instalment of £8,333.35. The first instalment of £8,333.33 has also been received.
A total of 18 employees were transferred under TUPE as part of the sale of the business and assets.
Ahead of entering administration, the business implemented a restructuring during May 2025, which saw new directors being introduced along with an injection of funds totalling £130,000, as well as a loan of £115,000.
The new directors shifted focus from growth to business stabilisation, implementing several corrective measures, including; repricing across all marketplaces and the rationalisation of loss-making channels; implementation of headcount reductions and a planned reduction in premises size from 50,000sq ft to 38,000sq ft (projected to save £70,000 annually); addressing pressure from suppliers and HMRC through informal payment arrangements.
Despite these efforts, the company’s financial position further weakened during the period ending 31 December 2025. Management accounts reveal a 50% drop in turnover to £1.7m, alongside a further increase in net losses. The Directors attribute the company’s position to three principal, interrelated factors: heightened competition; a general slowdown in market conditions due to reduced consumer demand; and operational disruption following the 2024 fire, compounded by the sustained liquidity impact resulting from the absence of any insurance proceeds.
In light of sustained reductions in turnover, margin compression, loss of clients, continuing tax liabilities, supply-side pressures and adverse market trends affecting the company’s offering, and following the exhaustion of all reasonable cost-saving and profit-maximisation measures, management information and financial projections demonstrated that there was no reasonable prospect of the company trading out of its financial position, and subsequently entered administration.
In a previous filed documents on Companies House, the Bristol-based business, which mainly produced mattresses in memory foam and latex, owed preferential creditor employee claims £17,900, while the HMRC is owed £111,000. Unsecured creditor claims totalled £1.3m, which included £250,000 owed to a connected company, over £200,000 owed to directors and a further £43,000 owed to staff. The company also owed £765,000 to the trade. It is expected that creditors will suffer a shortfall of £1.6m.
