Exeter-based KCM Kitchens has entered a creditors voluntary liquidation (CVL).
KCM Kitchens was a specialist contract furniture manufacturer supplying made-to-order kitchens and furniture across the UK. It employed more than 25 people, and operated out of a 40,000 sq ft manufacturing facility in Exeter.
Manufacturer KCM is the sister company of retailer Kettle Co Kitchens, which is also being liquidated. It had four showrooms, located in Plymouth, St Austell, Bodmin and Liskeard.
A CVL is a process that allows a company’s directors to begin winding-up an insolvent company’s affairs voluntarily. It is initiated by directors/shareholders when they believe their company’s financial problems have taken it beyond the point of rescue.
Administrators Luke Venner and Malcolm Rhodes of Bishop Fleming were appointed to oversee the liquidation, with the commencement of winding up beginning on September 14.
Bishop Fleming confirmed to kbbreview that KCM and Kettle’s troubles were reportedly caused by a combination of factors, including increased staff and material costs, a reduction in consumer demand and a reduction in sales.
In KCM Kitchens’ most recent accounts, filed up to the end of December 2022, the company said that its retail arm, Kettle, had “continued to operate profitably, on a similar level to previous years”. However, it admitted that KCM, the manufacturing arm, had experienced “challenges” and “encountered significant losses”.
71 companies are listed as the company’s creditors, being owed a collective sum of more than £744,000. The biggest creditor listed is H M Revenue and Customs, which is owed over £219,000.
kbbreview has reached out to KCM Kitchens for comment.