Lanfine Limited, which also traded as The Honesty Works, entered administration on 10 July

A Darvel soft furnishings firm that supplied John Lewis and Laura Ashley went into administration owing more than £1.5 million, newly published documents from its administrators show.

Lanfine Limited, which also traded as The Honesty Works, entered administration on 10 July, and all 19 of its staff lost their jobs. Details of its debts were first reported by The Herald.

Founded in 1973, the company supplied retailers with soft furnishings ranging from curtains and bed linen to towels, fabrics and home accessories, designing, printing and stitching curtains and cushions at its Ayrshire factory.

Laura Ashley was one of its biggest customers, with John Lewis becoming a key account more recently, and under The Honesty Works name it also sold direct to the public through Etsy and Shopify.

Joint administrators Michelle Elliot and Callum Carmichael of FRP Advisory say the business had been struggling for several years, recording a loss every year from 2023 onwards, with losses reaching almost £450,000 in 2025.

Their report puts the decline down mainly to falling demand from key customers, just as the cost of raw materials, manufacturing and shipping was climbing. The firm had also moved some of its production to Pakistan. It was hit by supply-chain delays linked to unrest in the Middle East, and its director's attempts to find fresh funding, including refinancing, came to nothing.

The report also shows how the £1.5 million-plus is split between lenders, the taxman, former staff and other creditors.

HSBC is owed £652,024, and administrators say it is not yet clear how much of that the bank will recover. A separate £344,420 is owed to HSBC Invoice Finance, which is expected to be paid back in full from its security over money owed to Lanfine by its customers.

Former staff are owed an estimated £26,965 in preferential claims for unpaid wages, holiday pay and pension contributions, and they may receive a payment. HMRC is among the secondary preferential creditors, who are owed £615,467 between them and could see part of that repaid.

Unsecured creditors, including British Gas and Capital on Tap, have lodged claims totalling £50,604 so far, but administrators do not expect there to be any money left to pay them.

Speaking when FRP's appointment was announced in July, Ms Elliot described Lanfine as a respected business with long-running ties to big UK retailers. She said the priorities were helping former employees with claims to the Redundancy Payments Service and getting the best price for the stock and machinery left behind, and she appealed for interested parties to come forward.

The collapse is a blow to a town whose textile roots run back more than 150 years. Alexander Morton founded his firm in Darvel in 1875, making lace curtains and Madras muslin there and employing around 600 people in the 1890s. It supplied Liberty's, and its rugs even found their way into 10 Downing Street.

Sources:
- Scottish textile company in administration after 50 years owing £1.5 million – The National (via inkl)
- Ayrshire soft furnishings wholesaler enters administration – Scottish Financial News
- UK homeware seller plunges into administration – AOL
- Alexander Morton and Company – Science Museum Group