Sofa Workshop sold but 20 shops close

LONDON (Reuters) - Retailer Sofa Workshop was sold on Friday but 20 of its 30 shops have been closed with the loss of 120 jobs.

Administrators Leonard Curtis said the business, which sells handmade sofas, had been sold to Erewash Upholstery, which is controlled by a consortium of investors led by Andrew Cussins, Sofa Workshop’s founder.

However, only 10 of Sofa Workshop’s stores were included in the sale, safeguarding 50 jobs.

The remaining 20 stores and head office were closed.

“It is unfortunate that we have not been able to save more of the original jobs, but what is important is that we are ensuring the completion of all current customer orders -- all of which will be taken on by the new business,” said Leonard Curtis’ Neil Bennett.

Sofa Workshop went into administration, a form of creditor protection, earlier this month.

Reporting by James Davey