All jobs were lost after Lanfine Limited, trading as The Honesty Works, was placed into administration in July, with new financial documents outlining the lead-up to its collapse, as first reported by The Herald.
The Darvel-based firm had supplied customers like John Lewis and Laura Ashley, providing a range of soft furnishings including curtains, bed linen, fabrics, towels and home accessories.
However, the “well-regarded” business, which was originally founded in 1973, closed its Ayrshire factory due to mounting cost pressures and supply chain issues after it moved some production to Pakistan.
READ MORE: SNP MP Lara Bird outs UK comedian as ‘secretly pro-Scottish independence’
Michelle Elliot and Callum Carmichael, of FRP Advisory, were appointed joint administrators.
They outlined in their report that the company had been experiencing trading challenges for several years and reported losses each year since 2023, culminating in a total loss of almost £450,000 in 2025.
Administrators attributed the losses mainly to “deteriorating demand for products from key customers combined with increasing costs of raw material stock, manufacturing and shipping”.
Renowned Scottish manufacturer collapses into administration (Image: Getty Images)
The documents also outlined that the total secured debt owed to HSBC Invoice Finance was £344,420 and the total secured debt owed to HSBC was £652,024.
“It is anticipated that HSBC IF will receive full repayment in relation to their secured debt over the trade debtors,” administrators said. “Recoveries to HSBC are uncertain at this stage.”
The administrators also said that it is estimated that preferential creditors total £26,965, “being the employees’ preferential element for arrears of pay, unpaid pension contributions and holiday pay as calculated in accordance with legislation”.
READ MORE: Susie McCabe blasts Reform UK MSP over ‘nonconsensual’ photo of women
They added: “It is anticipated that preferential creditors may receive a distribution.”
It is also estimated that a total of £615,467 is owed to secondary preferential creditors including HMRC, which administrators noted they “may receive a partial distribution”.
Meanwhile, claims totalling £50,604 from unsecured creditors, including the likes of British Gas and Capital on Tap, have been lodged to date.
Administrators said: “It is currently estimated that there will not be sufficient funds available to make a distribution to unsecured creditors.”
All 19 employees at the firm were made redundant at the time the administrators were appointed.