Sky News has learnt that Canburg, which also owns the Mark Wilkinson Furniture brand, has filed a notice of intention to appoint Grant Thornton, the accountancy firm, as administrator.

Hundreds of skilled jobs are said to be at risk, although a spokeswoman for the company could not say on Monday morning how many employees were on Canburg’s payroll.

The news represents a blow to the £2.5bn Business Growth Fund (BGF), the vehicle set up by Britain’s biggest high street lenders in the wake of the 2008 financial crisis.

The BGF invested £8m in Canburg in 2014 in return for a 20% stake, although a recent Companies House filing indicated that it now held more than 25% of the shares.

If the furniture-maker does collapse, it would be one of the most prominent corporate failures to have been backed by the BGF since it was set up.

Sources said that Canburg had been struggling for some time, and had been exploring a potential sale in recent months.

Smallbone of Devizes, which is known for its design-led furniture and cabinetry, was established in the 1970s in the Wiltshire town of Devizes.

The parent company recently parted company with Leo Caplan, its chief executive, and appointed Ian Gray as its executive chairman.

Mr Gray was reported to have said in September that Canburg was sitting on the biggest order book in its history.

Canburg, the BGF and Grant Thornton all declined to comment.

Source: Read Full Article