A major retailer looks to close stores in restructuring and a cycling supplier enters administration.
The heat remains on throughout the country although any business owner or director will tell you that it’s always on 24/7/365!
Whatever you or your staff members are doing this week, we hope you’ll take a few minutes to catch up on all the important and interesting insolvency and business news stories from the past seven days you might have missed.
So if you want to know why business insolvencies have reached a 12-month high; what directors can do if they’re struggling with high business energy costs; and how you can give your business a summer boost – you can read all these stories and more at our advice centre page.
River Island
The clothes retailer has proposed a restructuring plan to creditors that will be voted on in August that could see 33 of its 230 UK stores closed by January 2026 with the loss of hundreds of positions.
A further 71 stores have been earmarked for further talks with landlords to hopefully secure improved rental deals.
The deal will result in fresh funding being invested in the business in order to help fuel a turnaround.
Ben Lewis, chief executive of River Island, said: “River Island is a much-loved retailer with a decades-long history on the British high street.
“Howevr, the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers’ needs.
“The sharp rise in the cost of doing business over the last few years has only added to the financial burden. We have a clear strategy to transform the business to ensure its long-term viability.
“Recent improvements in our fashion offer and in-store shopping experience are already showing very positive results, but it is only with a restructuring plan that we will be able to see this strategy through and secure River Island’s future as a profitable retail business. We regret any job losses as a result of store closures, and we will try to keep these to a minimum.
The retailer is just one of a high-street fashion chain to have been impacted by both weaker consumer spending and competition from cheaper online rivals.
Building for Humanity
A south west construction company that specialised in 3D printed buildings has gone into voluntary liquidation.
Building For Humanity were working on building a 3D printed village of 46 quality affordable homes in Accrington, Lancashire, the first such housing project in the UK.
They have also worked previously with several councils who offered BFH land or empty commercial buildings in exchange for developing net-zero, carbon-affordable homes.
The ripple effect of this decision has also affected its main supplier – Versarien.
An engineering firm based in Gloucestershire had entered into a contract to support Building for Humanity to provide the know-how to produce and build the end products.
They make products using graphene for the automotive, clothing, biomedical and aerospace sectors but had issued a statement in March that they would likely cease to be able to pay its liabilities if it didn’t secure further funding, despite narrowing losses for the year.
Meddings Thermalec
A Devon machine building firm that can trace its roots back to the 1930s has gone into administration and ceased trading with immediate effect with the loss of 19 positions.
Meddings Thermalec offered swimming pool heating systems, metal fabrication services and engineering machinery but had struggled for sales with increased overheads and stronger overseas competition in recent years.
Director Peter Meddings, the grandson of the original founder William J Meddings, said: “I would like to thank all of the customers, suppliers and former staff of Meddings for everything.
“Since I became a director in 1993 it’s been a privilege to trade Meddings for over 20 years. Our long history saw it successfully trade through multiple recessions and World War 2, however the impact of Covid at a time when we’d invested heavily, coupled with various external factors resulted in a trading environment that we couldn’t continue to operate successfully in.”
The investment alluded to was significant in metal fabrication and engineering machinery divisions to drive sales and increase profitability but when Covid hit, the jump in sales failed to materialise with it taking to 2023 for the group to reach pre-pandemic sales levels.
The financial issues were compounded by a lack of investment in core product lines which saw a “sustained reduction in sales” which in turn generated substantial losses.
Without funds available to invest in R&D for products, there was no ability to reverse the losses with the directors forced to place the business into administration.
A further statement from administrators said: “The difficulties faced by Meddings are a reflection of the challenges faced by the UK’s manufacturing industry, where more overseas competition plus increased operational costs continue to put a strain on companies who may struggle to fully diversify.
“Meddings has a great brand name and reputation and that there are opportunities for interest parties to continue the Meddings brand.”
Greyville Enterprises
A well-established Midlands bicycle components and accessories distributor has gone into administration.
Greyville Enterprises began trading back in the 1970s when the company first represented UK manufacturers of bicycle components in Denmark and the Netherlands.
They grew to supply more than 1,000 retail and online shops across the UK, importing products to supply the burgeoning UK cycle market including brakes, handlebars, tyres, wheels, saddles, chains, clothing and helmets.
A statement from the directors said: “Greyville Enterprises is a long-established business which benefits from positive brand recognition and a strong reputation for providing a high-quality service, alongside straightforward and cost-effective ordering from an extensive range of products for bicycles, electric bikes and trikes, an exclusive B2B pricing strategy and a fast, efficient delivery operation.
“Over the years, it has secured a number of exclusivity and distribution agreements with notable cycling brands, including KMC, Oxford, Yomo, SR Suntour and more.
“Unfortunately, the business was unable to cover its debt liabilities and has therefore been placed in administration.
“A number of employees were made redundant with the remaining four members of staff also losing their positions.”
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