Wed, 08 Oct 2014 | ADMINISTRATION
Electrical wholesaler Apex Electrical Solutions has entered administration with the loss of 15 jobs.
The electrical wholesaler and lighting distributor, based in Gateshead, had debts amounting to almost £790,000, and buckled under the strain after a key customer itself entered insolvency.
The administrators at KPMG said the failed, unidentified, customer had piled on £100,000 of debt for Apex coupled with a 20 per cent loss in revenue, The Northern Echo reported.
Apex Electrical Solutions owed money to several businesses based in the North East. A report from KPMG, seen by the Northern Echo, shows debts of £76,822 to Hacel Lighting based in North Tyneside, £16,133 to Cleveland Cable in Middlesbrough, and a loan of £72,553 from the NEL Fund Managers’ North-East Growth Fund, amongst other debts.
Other financial considerations include a debt of £580,000 to RBS Invoice Finance, £11,000 arrears on staff pay, and had also reported losses of £190,000 in its last annual results.
Apex’s directors had attempted to bring in financial support, but failed, and had assets worth only £44,000, its joint administrator Howard Smith said.
Mr Smith confirmed that the business’ cash flow had been squeezed tightly after the failure of its biggest client, and that Apex feared it could not pay its debts.
“Due to the large amount of slow moving and obsolete stock it was not possible to continue trading during the administration.
“Due to the loss of customer goodwill following the appointment of joint administrators, we concluded it would not be possible to find a buyer for the business as a going concern,” he added.
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Related information:
Apex Electricals in administration
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