Upholstery firm in administration

ArgosUpholstery firm Olympia Furniture has collapsed into administration, putting 135 jobs at risk.

Administrators are still looking for a buyer for the Ashton-under-Lyne-based company, which makes sofas, suites and sofa beds for retail giants Tesco, Asda and Argos.

Olympia, which has suffered amid a downturn in the big-ticket furniture market, was bought by turnaround specialist SKG Capital in 2011 after it lost a major contract with Swedish flatpack giant Ikea.

But administrators said the general economic conditions had meant the company was unable to fund the significant losses caused by the loss of the contract.

Administrator Ben Woolrych, partner at FRP Advisory LLP, said: "We were engaged by the directors of Olympia Furniture to seek a sale of the business in order to maximise the position for creditors and the 135 employees.

"Unfortunately, however, it has not been possible to secure a sale to date and the company was placed into administration this afternoon.

"We are continuing to market the business for sale and liaise with customers whilst we assess the ability to continue trading within administration."

SKG bought Olympia, which has a factory in Tameside, near Manchester, from German company Himolla Postermobel.

High Street casualties

High Street casualties

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