Hundreds of employees at a Long Eaton furniture company were laid off after attempts to find a buyer failed.
JDP Furniture Group Limited – a holding company of the Celebrity Motion Furniture, Welbeck House, Wade Upholstery, JDP Frames, Ikon by Celebrity, Cintique, Celebrity and Arlo & Jacob brands – appointed FRP Advisory last month as directors.
The company’s head office is based on Wellington Street in Long Eaton.
The directors of JDP Furniture have now announced the closure of subsidiaries JDP Frames Limited and Welbeck House Limited after being unable to find a buyer – both are also based in Long Eaton.
As a result, the directors have now closed the companies for good and laid off 281 employees, including 76 in total at JDP Frames and 205 at Welbeck House.
Nathan Jones and John Lowe of specialist business consultancy FRP were appointed joint directors of JDP Furniture Group Limited and its subsidiaries on Thursday, April 2.
Due to the Covid-19 epidemic, all manufacturing operations had ceased on March 25 across the group.
After the appointment of FRP, a marketing process was initiated to find a buyer for JDP Frames Limited and Welbeck House Limited.
However, he announced that no acceptable offers had been received to keep the companies in business.
A handful of core staff have been retained on short notice to assist directors in their duties within each company.
JDP Furniture Group Limited, the group’s holding company, was also closed.
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A core team was retained in the short term to help with the orderly liquidation of the Group, while nine other employees were made redundant.
Meanwhile, the directors continue to develop their interest in H&F Upholstery, which operates as Arlo & Jacob, after acceptable offers were made for the company.
A voluntary corporate agreement (CVA) is expected to be offered to creditors of Celebrity Motion Furniture Limited as the directors seek to restructure the business and return control to the directors.
Nathan Jones, co-administrator at FRP, said: “Without any acceptable offer for JDP Frames and Welbeck House, these companies will now be fully liquidated and, unfortunately, the staff will be laid off.
“Following a consultation process, we help affected staff to make complaints to the severance pay office. “
Carol Hart, Head of Erewash Borough Council, said: “I am so sad to hear that these long-standing local businesses had to leave.
“I am very sorry for the company and for those who lost their jobs.
“Grants were approved for some of the smaller businesses, but others fell through the cracks and could not be saved.
“The company has brought a fantastic reputation to Long Eaton and Erewash as a whole, employing many local people over the years.
“This is devastating news.”
Over the past two years, the company had lost a total of £ 5.5million with revenues down by over £ 10million.
Accounts show that JDP employed 540 people at its Long Eaton plant as of January this year.