Mereway Kitchens ceases trading despite ‘substantial investment’

Mereway Kitchens logo

Mereway Kitchens has closed its doors for good after its new company concluded it couldn’t be saved from the dire straits it had been left in by the previous owners.

Highlight Green Acres Ltd, a subsidiary of Sigma 3 Group, acquired the assets of Mereway Kitchens out of its previous administration in August 2023. But despite what the company describes as ‘substantial investment’ and ‘significant progress’ in improving processes and service, it has not been able to turn Mereway Kitchens around.

Highlight Green Acres has appointed Huw Powell, Paul Wood and Mark Malone, partners at Begbies Traynor, as joint administrators and 120 staff have been made redundant.

A spokesperson for Highlight Green Acres 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.”

Huw Powell, joint administrator, and partner at Begbies Traynor, said it was a “difficult day”, saying volatile economic factors are resulting in falling consumer demand and this created significant cash flow pressures for Mereway Kitchens.

“It is always disappointing to see a long-established business fail,” Powell said. “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 Kitchens for delivering high quality products will allow employees to find new employment quickly, and we wish them all the best.”

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