BusinessBusiness RecoveryBDO issues going concern warning about Sofa Workshop

BDO issues going concern warning about Sofa Workshop

Auditor says that there is a material uncertainty that troubled furniture retailer can carry on trading

Sofa Workshop’s auditor has issued a warning that the company may not be able
to carry on trading unless it gets another injection of cash.

The firm said that there was a material uncertainty as to whether the
company, which has 32 stores, could continue as a going concern in the face of
hostile economic conditions.

BDO said that Sofa Workshop had ‘no other finance facilities in place’ in

its accounts: ‘Due to the current economic climate, there is uncertainty as to
whether trading can be maintained at the level necessary for the company to
operate without need for further funding from shareholders or third-party
funding.’

Further reading:

Figures
highlight surge in bankruptcy and collapse

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