Mon, 13 Nov 2023 | ADMINISTRATION
Quantum 4, a Leicestershire firm that designs, manufactures and installs retail display equipment, has closed after falling into administration earlier this year. The company, which was founded in 2002 and is based in the town of Market Harborough, appointed Opus as administrators in August.
Opus said that the company’s collapse was attributable to the twin impacts of the COVID-19 pandemic and the cost-of-living crisis on the UK’s retail sector. The company suffered a severe setback in October 2022 when its primary customer halted a store development programme and withdrew their orders.
Subsequently, additional customers also either cancelled or postponed orders, as retail sector firms sought to cut costs amid the cost-of-living crisis.
In an effort to navigate these challenges, Quantum 4 undertook cost-cutting and restructuring measures. However, its cash flow problems continued to worsen and it entered administration after efforts to find a buyer for the company failed. At the time of its closing, Quantum 4 had debts of around £2.5 million.
Joint administrator Louise Williams of Opus commented: “The demise of this previously successful retail display specialist is another illustration of how difficult conditions are right now for any business operating in this consumer-facing sector, where the pressures on customer budgets are forcing many retailers to think carefully about their investment plans and scale back their commitments to suppliers like Quantum 4.”
Demonstrating the sudden impact of the downturn in the retail sector, Quantum 4’s collapse comes just over a year after it reported significant growth. In its last available accounts, covering the year to March 31 2022, the company reported profits of close to £940,000, compared to slightly under £300,000 a year earlier.
At the time, the company’s fixed assets were valued at £184,161, current assets at £2.85 million and total equity at slightly over £1 million.
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