Thu, 21 Jul 2011 | ADMINISTRATION
Office furniture manufacturer RK Furniture has collapsed into administration with the immediate loss of all 45 staff. The assets of the 30-year-old business may potentially be sold at auction.
The administrators at FRP Advisory failed to find a buyer for the £2.5 million turnover firm, which has ceased to trade. RK Furniture was hit by cash flow problems in a difficult trading environment.
Talks are underway with “two parties on the prospect of buying all the assets and restarting the company,” FRP Advisory spokesman Philip Armstrong said.
“If one of them does buy all the assets of the company, there is no guarantee that it would stay in the area. Staying would involve negotiations with the landlord of the 120,000 sq. ft. factory, but it is vaguely possible,” he continued.
If a deal is not forthcoming, however, the assets may be sold at auction so that maximum value is recovered.
RK Furniture specialised in making office furniture including desks, tables, pedestals, bookcases, filing cabinets and cupboards. It supplied to wholesalers and dealers in the UK.
RK Furniture Limited reported total current assets of £1.82 million for the year ending 30 April 2010, with total current liabilities of £1.15 million.
This outstanding business is being sold together with its exceptional freehold commercial premises. Also included in the selling price is an adjacent 3 bedroom semi-detached residential property that is currently let on an AST.
FREEHOLD
Under current ownership for the last 25 years, but with a trading history dating back to the 1940s, the company manufactures and sells high-end architectural joinery for new builds and renovations.
The business is well-established and offers its products and services across the region. The vendors now wish to retire, with the business representing an excellent acquisition for an existing operator within a similar sector or a new market entrant.
LEASEHOLD
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