Thu, 06 Jul 2023 | ADMINISTRATION
Administrators are seeking a sale of garage door and roller shutter manufacturer Birkdale Manufacturing Group as a going concern. Interpath Advisory’s Howard Smith and James Lumb were appointed as joint administrators to the Scunthorpe-based firm on June 30 2023.
The company, an established manufacturer of garage doors and roller shutters, has increased its product range over recent years to include window security shutters, patios, fence panels, front entrance doors, awnings and pergolas.
However, the company has experienced trading difficulties which have had an adverse impact on its cash flow. Over the past few weeks, one of the firm’s creditors had also issued a winding-up petition against the company.
The business ceased to trade prior to the appointment of administrators. However, no redundancies have been made as of yet, with administrators exploring interest from potential buyers and seeking to secure a sale of the company as a going concern.
Joint administrator and Interpath managing director James Lumb said that companies across the sector had suffered from headwinds including weakening demand, rising input costs and interest rates over recent months and that “these challenges proved insurmountable for Birkdale Manufacturing Group.”
Lumb added: "However, we are presently working towards a solution which could see the business rescued as a going concern. We will continue to update workers regularly while this process unfolds."
In Birkdale Manufacturing’s most recent accounts, covering the period from May 31 2022 to December 31 2022, its fixed assets were valued at £3.7 million and current assets at £705,424. The company owed £1.86 million to creditors within one year at the time, with its net assets amounting to £1.7 million.
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