Wed, 11 Sep 2024 | BUSINESS SALE
The Electrolytic Plating Company, a Walsall-based metal finishing company, has fallen into administration. Administrators completed a sale of two of the company’s divisions following their appointment, but the remaining business has ceased trading, with a number of redundancies being made.
The manufacturer, which has traded for more than a century, provided electrolytic plating, high-performance surface coatings and metal finishing. However, the company had struggled with several financial challenges over recent years, particularly in the wake of the COVID-19 pandemic.
Kerry Bailey and Lee Causer of BDO were subsequently appointed as joint administrators of the company on September 5. Following their appointment, the joint administrators completed a sale of two divisions and certain assets of the business to Wolverhampton Electro Plating.
However, while the deal has saved a number of divisional jobs, several redundancies were made due to the remaining business ceasing trading. According to the company’s 2022 accounts, it employed an average of 50 employees during the year.
Following the sale, joint administrator Kerry Bailey commented: "The Electrolytic Plating Company has traded for over a century, but it has had to navigate a number of financial challenges, particularly since the COVID crisis.”
"We are delighted that the sale of the two divisions and certain assets will see the business continue, securing the continued employment for the divisional employees.”
"Regrettably, the administration has also resulted in a number of redundancies. The administrators are supporting affected staff members with their statutory redundancy claims. We are now taking steps to maximise the remaining assets of the company for the benefit of creditors, in line with our duties."
In the company’s most recent accounts at Companies House, for the year ending December 31 2022, its fixed assets were valued at £3 million and current assets at approximately £1.2 million. However, the company’s liabilities at the time meant that net assets amounted to slightly under £48,000.
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