British furniture manufacturer Mereway Kitchens has entered administration.

Paul Wood, Huw Powell and Mark Malone of Begbies Traynor were appointed joint administrators of Highlight Green Acres, trading as Mereway Kitchens, on January 25, 2024.

Highlight Green Acres Limited acquired the assets of Mereway Kitchens when it went into administration in the summer of 2023 and operated from Birmingham, employing 135 staff.

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The business has ceased trading, with 120 staff made redundant with immediate effect. The remaining 15 staff are assisting the administrators with the orderly wind down of the business.

Huw Powell, joint administrator, and partner at Begbies Traynor, said: “It is a difficult day for everyone involved with Mereway Kitchens.

“The trading challenges experienced by the company have been felt by many businesses due to volatile economic factors resulting in falling consumer demand.

“This created significant cash flow pressures and after concluding that alternative options were not viable, unfortunately the appointment of administrators and decision to cease to trade became necessary.

“It is always disappointing to see a long-established business fail and our thoughts are with the employees, who only recently came through an insolvency process and will be devastated by today’s news.

“We are hopeful that the reputation of the skilled workforce at Mereway for delivering high quality products will allow employees to find new employment quickly, and we wish them all the best.”

A spokesperson for the company said: “Despite substantial investment and significant progress in many areas, it has not been possible for Mereway to achieve the required sales volumes that were needed to make this business profitable.

“The impact of the original business going into administration in 2023 appears to have significantly impacted customer confidence.

“This, along with a weakening market in the last three months has materially impacted the business. It is therefore with great sadness we have reached the conclusion that there was no viable alternative to this action.”

Mereway Kitchens served a network of independent retailers across the country.

Chair of trade association the Kbsa Richard Hibbert commented: “Firstly my thoughts are with all the staff who after their jobs were saved last year find themselves in this sistuation so quickly.

“It’s so sad to lose a British brand from the market and for the issues that it will bring for retailers and consumers.

“The Kbsa and I am here to support retailers through this tough period and assure them things will get better and options are available.”

FAQs relating to the situation have been published and creditors can email mereway@btguk.com with any other urgent queries.