Fri, 07 Jul 2023 | ADMINISTRATION
Rimstock Limited, a Black Country manufacturer of alloy wheels, has fallen into administration after failing to secure funding following a period of financial difficulties. Interpath Advisory’s Ryan Grant and Chris Pole have been appointed as joint administrators and are assessing interest in acquiring the business.
The company was originally affected by the impact of COVID-19, which forced it to close for an extended period of time. Its aluminium smelter was subsequently closed down, leading to the loss of 135 skilled roles, with the company seeing a decline in sales since then. This position was subsequently exacerbated by headwinds affecting the wider manufacturing sector, such as rising costs for raw materials.
Rimstock, which was founded in 1985 and is based in West Bromwich, manufactures alloy wheels which it supplies to automotive manufacturers, including some of the world’s most prestigious luxury car firms. The company is reported to be the only manufacturer in Europe to have specialist rotary forge capabilities, enabling it to produce stronger, more complex designs.
According to Interpath Advisory, the company has faced financial difficulties over the past year, which led the firm’s management to engage Interpath as advisors during discussions over funding with key stakeholders and investors.
However, these negotiations proved unsuccessful, prompting management to place the company into administration. The joint administrators were subsequently appointed on July 5 and will work with management and Rimstock’s key customers to establish the level of support for the firm’s ongoing trading.
The joint administrators will also review the business’ available options and have advised any parties that might be interested in the company to contact Interpath's Sam Greatorex as soon as possible via sam.greatorex@interpathadvisory.com.
Interpath Managing Director and joint administrator Chris Pole commented: “Rimstock is the UK’s only alloy wheel manufacturer, supplying into some of the world’s best-known luxury car brands. Unfortunately, however, the many challenges facing industrial manufacturers across the country, including rising raw material costs, have proved to be insurmountable in this particular case.”
“Our immediate priority is to understand customer requirements for future supply and assess whether there is any interest in the business as a going concern.”
Rimstock’s most recent accounts at Companies House cover the year ending December 31 2020, a period during which its trading was heavily affected by the COVID-19 pandemic. During that time, the company saw its turnover fall to £7.9 million, from £11.8 million a year earlier, while its pre-tax losses widened from £6.6 million to £9.1 million.
At the time, the company’s fixed assets were valued at £21.2 million and current assets at £3.7 million, with net liabilities standing at £3.1 million.
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