150 staff made redundant as Black Country furniture factory closes
Around 150 people have lost their jobs after the sudden closure of a Black Country furniture factory.
Staff at the Sven Christiansen factory at First Avenue on the Pensnett Estate in Kingswinford were told the news on Friday.
The office furniture company had been trading for 47 years, with the majority of its staff based in the Black Country.
In a letter to customers, director and company secretary William O'Brien said that the Covid-19 pandemic had created a burden of debt that had become overwhelming.
Sven Christiansen, which has its head office in Guildford and a design studio in London, had bought in specialist consultants to advise on a potential sale as a going concern.
Mr O'Brien, aged 67, said the last interested party had withdrawn and the company's bank had been informed that there was no viable way forward.
The majority of staff have already been made redundant, with a small team remaining to help with the closure and disposal of assets.
Mr O'Brien said in his letter: "I am desperately sorry for the disruption and lost business that our closure will cause many of our customers. I apologise most sincerely for this.
"Words cannot express how sad I am at having to close the business after some 47 years of trading, and my heart goes out to all our loyal staff, many with very long service who face the shock, disruption and financial insecurity of sudden redundancy."
The company is selling all remaining furniture in its showrooms and design studio. It will also sell-off intellectual property, brand names and designs.
Machinery and equipment is likely to be sold at auction.
Despite the Scandinavian name the business was established in 1974 and has always been British owned.
Its last financial results for the year to October 31, 2020, saw a drop in annual turnover from £11.9 million to £9.9m with its pre-tax loss increasing from £183,500 to £682,200. The number of people employed had reduced from 187 to 178 in the course of the year.
In 1999 it became the biggest occupier on the Pensnett Estate in an expansion which created 25 new jobs.
It had been based on the estate since 1989 and was running out of room until it was offered an additional 63,000 sq ft opposite its existing premises.
The workforce increase from 200 to around 225 as a result before declining again in recent years.
