Voluntary Administration Sparks Default Event for Inventis’s Furniture Arm

Voluntary Administration Signals Financial Strain

Inventis Limited has announced that several entities comprising its commercial furniture division have been placed into voluntary administration as of 20 June 2025. This move reflects significant financial distress within this segment of the business, which includes Basset Furniture, Gregory Commercial Furniture, Workstations, and related service companies. The appointment of Simon Cathro from Cathro and Partners as administrator marks a critical step in managing the division’s immediate challenges.

Default Event and Funding Challenges

The voluntary administration has triggered a default event under the terms of Inventis’s funding arrangements with the THN Group, its primary lender. The company disclosed ongoing discussions with THN regarding the default and the future of its finance facilities, including a recent assignment of factoring facilities within the THN Group. The Board has submitted proposals and is exploring options to remedy the default, including a potential debt-to-equity conversion, though these negotiations remain in early stages.

Asset Sales and Debt Reduction Efforts

To address the financial pressures, Inventis is working with THN Group to continue asset sales from the furniture division. The proceeds from these sales are expected to cover the outstanding debt, subject to lender approval. This strategy aims to stabilise the group’s financial position while the administration process unfolds.

Technology and Defence Businesses Remain Intact

Importantly, Inventis’s technology and defence-related businesses remain outside the administration process and continue to operate independently. The Board emphasises strong growth prospects in these areas and is actively pursuing funding opportunities to support expansion. This bifurcation of the group’s operations highlights a strategic focus on preserving and growing its higher-potential segments despite the furniture division’s difficulties.

Looking Ahead

The coming weeks will be critical as Inventis works with the administrator and lender to navigate the voluntary administration and negotiate restructuring terms. The outcome will have significant implications for the group’s capital structure and operational focus moving forward.