Furniture manufacturer Poplar Products was unable to recover from the impact of Covid-19 as increased costs alongside weakened demand led to the administration of the company.
Ed Connell and Mike Kienlen, of Armstrong Watson LLP, were appointed as joint administrators of Poplar Products (Leeds) Limited on 1 June 2026.
In the build up to its collapse, the Company began experiencing financial difficulties during the COVID-19 pandemic. A lack of recovery in the hospitality sector following the pandemic led to a substantial drop in orders. This was compounded by increasing overheads, including rates, power, and increases to minimum wage/ national insurance.
At its peak, the Company employed 40 members of staff; however, due to decreased demand, a reduction in headcount was undertaken. The Company had 15 employees at the date of administration.
To help with finances, the Company secured a bounce back loan and were making regular repayments in respect of this. In addition, to assist with cashflow, both directors had advanced funds to the Company. These measures were taken in conjunction with attempts to reduce costs as well as increase turnover.
Despite efforts to improve the financial position of the business, the Company experienced pre-tax losses of £352,000 during the FY25 period, with turnover reducing from £1.4m to £930,000.
Due to the fact that there was no prospect of demand increasing or operating costs being reduced, alongside the Directors and shareholders were not in a position to make any further finance available, it was concluded that the Company was unable to continue to trade and it was necessary to place the business into an insolvency process.
Upon appointment of administrators, all staff were made redundant and administrators undertook a review of business assets to realise the best outcome for creditors.
With regards to creditors, preferential employee claims are owed £9,600, while the HMRC is owed £32,600, which are expected to be repaid from realised assets valuing £205,000. Unsecured creditors are owed £502,000, which includes a further £268,000 owed to staff. It is expected that creditors will suffer a shortfall of £388,000.
All the assets of Poplar Products were sold via an online auction through Walker Singleton after the business ceased trading, with bidding closing on 9 July 2026.
