Mon, 17 Jun 2024 | BUSINESS SALE
An engineering company that provides services for the automotive sector has been acquired out of administration. Wolverhampton-based G.E. Starr Limited fell into administration last month after nearly 50 years of trading.
The company provided specialist engineering services in metal forming, assemblies, laser work, toolmaking and prototype projects, serving an array of clients in the automotive sector, including Aston Martin, Lotus and Morgan.
Despite its prominent position in the market, the company had encountered challenging trading conditions over recent years, similar to many businesses in the UK engineering and automotive sectors. These challenges were exacerbated by delays experienced on some orders, which created difficulties for the company in managing its cash flow and debt.
It was ultimately placed into administration at the end of May, with Craig Povey and Gareth Prince of Begbies Traynor appointed as joint administrators. The joint administrators subsequently completed a sale of the business to GE Starr Engineering on June 6, in a deal that secures the company's position in the supply chain and enabled most of its staff to be re-employed.
Begbies Traynor partner and joint administrator Craig Povey commented: “As with many businesses within the automotive sector, it has faced numerous economic challenges. We are pleased that, following the completion of the sale, the business has been able to re-employ the majority of its employees.”
“This positive outcome under difficult circumstances will ensure the continuity of the company’s important role within its customers’ supply chain.”
In G.E. Starr Limited’s most recent accounts at Companies House, its fixed assets were valued at slightly more than £298,000, with current assets valued at approximately £2 million and net assets amounting to around £300,000.
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