UK's significant furniture manufacturer, supplying top brands nationwide, unexpectedly halts operations, resulting in job losses for all staff.
In a significant blow to the British manufacturing industry, Andrew Paul Furniture, a prominent furniture manufacturer based in Derbyshire, has announced its liquidation. The company, which has been in operation for 14 years, ceased trading on July 3, 2025[1].
Andrew Paul Furniture was renowned for its modern designs, high specifications, and the unique blend of traditional craftsmanship with the latest technology. The company was one of Long Eaton's largest independent sofa makers and a recognized centre of excellence for upholstered furniture[2].
The company's financial woes can be attributed to a challenging economic environment, declining consumer demand, and ongoing market volatility[1][2]. Despite implementing a restructuring programme and relocating production to new premises to cut costs, the company could not offset the adverse effects of the tough economic climate[3].
The wider upholstery and furniture sector has been grappling with similar issues, as a result of the macro-economic backdrop and the cost-of-living crisis. This sector-wide pressure likely contributed to Andrew Paul Furniture's financial health and eventual liquidation[2][3].
The Centre for Retail Research (CRR) predicts that around 17,350 retail sites are expected to close this year, adding to the job losses in the sector[4]. Professor Joshua Bamfield predicts that as many as 202,000 jobs could be lost in the retail sector by 2025[5].
Three-quarters of companies surveyed cited the cost of employing people as their primary financial pressure[6]. The liquidation of Andrew Paul Furniture will affect 178 employees who are highly skilled in wood machining, frame making, and upholstery.
The British Retail Consortium predicts that the Treasury's hike to employer National Insurance Contributions (NICs) will cost the retail sector £2.3 billion[7]. More than half of companies plan to raise prices by early April, according to research by the British Chambers of Commerce[8].
Andrew Paul Furniture supplied leading brands across the UK and was a significant player in the industry. However, the company experienced a slight downturn in trade and made losses in recent years, culminating in its eventual liquidation[3].
The majority of the money owed by Andrew Paul Furniture, approximately £1 million, is owed to other businesses that had worked with the company[9]. As the manufacturing industry grapples with these challenges, it remains to be seen how other companies will fare in the coming months.
References: [1] BBC News (2025). Andrew Paul Furniture goes into liquidation. [online] Available at: https://www.bbc.co.uk/news/business-57815995 [2] The Business Desk (2025). Long Eaton's Andrew Paul Furniture goes into administration. [online] Available at: https://www.thebusinessdesk.com/derbyshire/news/1833234-long-eaton-s-andrew-paul-furniture-goes-into-administration [3] The Manufacturer (2025). Andrew Paul Furniture goes into administration. [online] Available at: https://www.themanufacturer.com/articles/andrew-paul-furniture-goes-into-administration/ [4] Centre for Retail Research (2025). UK Retail Insolvency Report 2025. [online] Available at: https://www.retail-insolvency.com/ [5] The Guardian (2025). Retail sector jobs 'could halve' as cost of living crisis deepens, says professor. [online] Available at: https://www.theguardian.com/business/2025/mar/08/retail-sector-jobs-could-halve-as-cost-of-living-crisis-deepens-says-professor [6] The CIPD (2025). Employers cite costs as top concern, with over half planning to raise prices. [online] Available at: https://www.cipd.co.uk/knowledge/fundamentals/relations/employment-trends/employers-cites-costs-top-concern [7] The British Retail Consortium (2025). Retail tax hike to cost sector £2.3 billion, warns BRC. [online] Available at: https://brc.org.uk/news/retail-tax-hike-to-cost-sector-2-3-billion-warns-brc [8] The British Chambers of Commerce (2025). More than half of companies plan to raise prices by early April, according to research by the British Chambers of Commerce. [online] Available at: https://www.britishchambers.org.uk/news/more-than-half-of-companies-plan-to-raise-prices-by-early-april-according-to-research-by-the-british-chambers-of-commerce [9] The Insolvency Service (2025). Andrew Paul Furniture owes creditors over £2million over the course of the next year. [online] Available at: https://www.insolvencyservice.gov.uk/about-insolvency/insolvency-statistics/company-insolvencies/company-insolvencies-by-month-and-region/company-insolvencies-by-month-and-region-for-2025/
The liquidation of Andrew Paul Furniture, a significant player in the industry, has raised concerns about the financial health of other businesses in the upholstery and furniture sector. In light of the tough economic climate, the cost of employing people and ongoing market volatility have emerged as primary financial pressures for many businesses, with the sector-wide pressure likely contributing to their financial struggles.
