Wed, 17 Jan 2024 | ADMINISTRATION
Two West Yorkshire mountain bike manufacturers connected by common directorship and ownership have fallen into administration. Orange Mountain Bikes Ltd and P Bairstow Ltd, based in Halifax, have ceased trading, but administrators are hopeful of selling the business and assets.
P Bairstow Ltd manufactures high end mountain bike frames for Orange Bikes’ bike manufacturing operations and also provides precision engineering services to third parties. In the company’s accounts for the year ending October 31 2022, its fixed assets were valued at slightly over £1 million and current assets at around £1.2 million, with net assets standing at £169,835.
Orange Mountain Bikes Ltd manufactures bikes which it sells to retailers, as well as directly to customers via an online store. In the company’s account for the year ending October 31 2022, its total assets were valued at around £6.85 million, while net assets amounted to just under £2 million.
The companies fell into administration on January 10 2024, with BDO restructuring partners Mark Thornton and Kerry Bailey appointed as joint administrators. The businesses, which employ 44 staff between them, were impacted by COVID-19 restrictions, which caused disruption throughout the industry during 2021 and 2022, along with increasing costs and sector-specific challenges.
As a result of these headwinds, the businesses saw a detrimental impact on their cashflow and financial position. They were unable to resolve these issues, leading to the appointment of administrators. While they will not be trading while in administration, the joint administrators have said that they are hopeful that a sale will be concluded shortly for the bike manufacturing operations and certain assets of P Bairstow and for Orange Mountain Bikes' business and certain assets, preserving as many jobs as possible.
Joint administrator Mark Thornton said: "Despite the considerable efforts of management and their teams given sector wide challenges, the financial position of the companies means that they have been unable to continue operating.”
"The joint administrators will seek to maximise realisations for creditors in line with their duties and are hopeful that a sale of the business and certain assets will complete shortly, safeguarding as many jobs as possible."
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