The report shows that the company owed trade creditors £13.4m and HM Revenue and Customs around £5.4m, when Bill Dawson and Phil Bowers, who are both partners working at the Manchester office of Deloitte were appointed administrators.
Homeform’s owner, private equity firm Sun Capital Partners, is likely to take a hit of nearly £54m on the £62m it had injected into the company. Barclays, Homeform’s lender, may receive the £5.5m it is owed as a first-ranking secured creditor.
Management accounts also show that Homeform’s turnover dropped to £134.1m in the 12 months to March 31, down from £151.2m a year earlier. Homeform’s losses before interest and tax had also multiplied to £15.1m, from £3.7m in 2010.
Homeform entered administration in July, after suffering due to falling consumer spend and rising debts. The company traded under the brands Moben Kitchens, Dolphin Bathrooms, Sharps Bedrooms and Kitchens Direct.
Shortly after appointment, the administrators sold the Sharps Bedrooms division to a new company, Sharps Bedrooms Limited, owned by an affiliate of Sun European Partners. The sale safeguarded 627 jobs and ensured that customers’ deposits were honoured.
The operations of Moben, Dolphin and Kitchens Direct were closed down, leading to 557 redundancies, although the brands are up for sale.
The business traded from 170 showrooms and employed 1,200 staff at the time Deloitte was appointed.
At the time of Homeform’s collapse in July, joint administrator Bowers said: “The business suffered from the extreme pressures currently hitting retailers of high value items, as customers shy away from big ticket purchases such as kitchen and bathrooms.
He said that Homeform’s trading downturn resulted in a funding requirement that management attempted to bridge through different funding providers and cash initiatives.
A funding option could not be secured, and the director then placed Homeform into administration.