Ultra Furniture, based in Kingswinford, is a manufacturer of upholstered furniture to the UK retail market. The company had been suffering financial problems followed by the loss of a major customer in February 2016.

Despite new sales being secured and cost-cutting measures implemented by management, the company was unable to trade out of its difficulties or secure additional investment outside of an insolvency process. Its parent company, Raven Holdings Ltd, has also been placed into administration.

Immediately following RSM’s appointment, the furniture business was sold by the administrators to PPKidd 56 Ltd, protecting the jobs of 116 employees and ensuring continued trade for the supplier and customer base.

Diana Frangou, joint administrator and restructuring advisory partner for RSM in Birmingham, said: ‘Our key priority throughout this process was to rescue the business, and we are extremely pleased to have been able to achieve this. As the company had traded from the same site for 20 years, they were keen to place an emphasis on a local supply network. Therefore its rescue was of upmost importance - not only for its direct stakeholders, but also for the local economy and community.’

Glenn Aston on behalf of PPKidd 56 Ltd said: ‘The two key motivations behind delivering this transaction were protecting the jobs of 116 employees and ensuring that the loyal customers were not let down. It is regrettable that Ultra had to enter an insolvency process, however together with our retained workforce we hope to work with Ultra’s loyal customer and supplier base moving forward.’