Mon, 15 Jan 2024 | ADMINISTRATION
A Wigan-based supplier of road rail vehicles has fallen into administration after facing falling demand amid budgetary constraints across the industry. Clare Boardman and Kristian Shuttleworth of Teneo Financial Advisory Limited have been appointed as joint administrators of TXM Plant Ltd, Equipment and Track Solutions Ltd and Bacchus Newco.
The group provides operated road-rail vehicles for UK rail contractors engaged in track maintenance renewal and other infrastructure work and is reported to be the UK’s largest supplier of road/rail vehicles. The group, which operates from seven depots across England, reported turnover of £38.9 million in the year to April 29 2022, but fell to a £2.1 million pre-tax loss.
In 2016, the group, which was originally known as NDS Plant and was part of Network Rail, was the subject of a management buy-out (MBO) backed by LDC, after seeing its turnover more than double since 2013.
According to the joint administrators the group has been hit by continued cost pressures resulting from high inflation and interest rates. Amid these difficulties, the group explored numerous options, including a sale process, raising additional capital and refinancing existing debt.
However, these efforts proved unsuccessful, leading to the decision to appoint administrators. The joint administrators are working alongside all stakeholders, including key customers, to explore the possibility of a sale of the business or, alternatively, to undertake an orderly wind-down. Approximately 45 employees have been retained to assist in this process, but around 150 have been made redundant.
Joint administrator Kristian Shuttleworth commented: "This is a very difficult time for employees, and we will do all that we can to support them over the coming weeks, including speaking to the Job Centre Rapid Response Unit as a matter of urgency and liaising with the insolvency service to expedite payments due under the Redundancy Payment Service."
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