Major timber merchants prepare for administrations and a popular steak house is saved this week.
With the Budget being held next week, many directors and business owners will be wondering what the announcements will mean for them.
We’ll cover this in our blog this week but in the meantime it’s the perfect opportunity to catch up on all the other important and interesting business & insolvency news stories you might have missed from the past seven days.
So if you want to know why business insolvencies have climbed 17% year-on-year; why directors should fast-track their MVL; why Kevin Pinkerton is joining BusinessRescueExpert and what directors need to know about changes to the business energy market – you can read all these stories and more at our advice centre page.
National Timber Group England
One of the UK’s largest timber suppliers has filed a notice of intention to appoint administrators.
The National Timber Group England (and its parent company National Timber Group Midco) employ over 1,000 staff and operate a wide network of sites across the country trading under several well-established industry brands including Arnold Laver, National Timber Systems, SV Timber and NORclad.
These serve a broad range of customers from independent joiners and housebuilders to contractors and major construction projects supported by extensive warehousing, machining and distribution facilities.
The financial challenges for the business have intensified over recent years. Turnover for 2023 was close to £200 million but recorded a £6.3 million pre-tax loss.
Rising costs, tightening margins and slower activity in parts of the construction sector have all put pressure on timber suppliers which have contributed to the group’s current position.
Middletons Steakhouse and Grill
A steakhouse chain with seven venues across the Midlands and East of England employing 160 employees has been purchased in a pre-pack administration deal.
Middletons Steakhouse and Grill has restaurants in Chelmsford, Colchester, King’s Lynn, Leicester, Milton Keynes, Norwich and Peterborough.
Directors confirmed that the company had experienced challenging trading conditions as a result of rising raw material and labour costs as well as fragile consumer confidence.
Following the sale of all assets to new owners, administrators said: “Hospitality businesses up and down the country continue to battle hard in the face of strong trading headwinds. Whilst these challenges proved insurmountable for Gastro Pubs Limited, we’re pleased to have concluded this transaction which will allow the company’s seven Middletons Steakhouse & Grill restaurants to continue trading, preserving the jobs of their loyal staff.”
Wright Hassall
A 150-year-old Midlands law firm has been bought in a pre-pack administration deal creating a new firm of over 1,000 staff in 12 offices.
Wright Hassall have faced difficulties over the past few months including rising costs and difficulties with recruitment.
They have been purchased by HCR Law with the new business becoming HCR Wright Hassall.
Sam Payne of HCR Law said: “This is about building on shared strengths and creating new opportunities for our clients and staff. For now, it’s business as usual for clients who we look forward to supporting further.”
Yolk
A London “fine fast food” chain has gone into administration and entered a Company Voluntary Arrangement (CVA) with its creditors although has closed three of its ten sites in the city as a result.
Yolk was launched as a pop-up before opening its first permanent site in New Street Square in 2018 by founder Nick Philpot.
The company rebranded in May this year with the aim of creating a distinctive voice amid a crowded sandwich and lunchtime sector with a new menu, brand and enhanced in-store experience for their customers.
Mr Philpot said: “After a tough but necessary reset, Yolk is stronger and more focused than ever; with seven high-performing sites, double-digit growth and a profitable, resilient business.
“We made hard choices, and losing some brilliant teammates was painful – their contributions have set us up for lasting success and I’m hugely grateful to them. The CVA puts us in control of our future, protecting what makes Yolk special and fuelling the next chapter of growth.”
Cove Communities
A Holiday park business with sites all over the UK has gone into administration.
Cove Communities operate 11 holiday parks and lodges in Cornwall, Cumbria, Scotland.
A statement from administrators said: “As administrators, our priority is to ensure a smooth transition and maintain stability across the parks. We’re working to ensure day-to-day operations continue with minimal disruption.
“Owners, residents and holidaymakers should not be impacted and can contact the site managers with any questions they may have.”
Other companies in the wider Cove Communities group are not impacted by the administrators and continue to trade as normal.
Curvalux
A Sheffield-based fixed wireless broadband technology company has gone into administration this week.
The company specialised in developing innovative, energy-efficient fixed wireless access broadband technologies designed to provide multi-gigabit connectivity in both rural and urban areas.
Operations had ceased for some time prior to the administrators appointment and no staff were employed at the time.
A statement from directors read: “The administration process follows the company experiencing a shortfall in the anticipated level of available funding required to cover set-up costs to fulfil customer orders.”
Merit Group Services
A Cramlington-based offsite construction firm has gone into administration with 340 employees being made redundant as a result.
Merit Group Services, along with Merit Health and Merit Holdings, worked with customers across the healthcare, life science, education, battery technology and aerospace industries before administrators were appointed.
In recent months Merit experienced “contractual issues and delays to a number of its major contracts, which in turn had a significant impact on cashflow.” As liquidity pressure mounted, Merit became subject to an unexpected winding up petition which adversely affected new work awards and resulted in delays to a number of projects.
Directors undertook a thorough exploration of their options, including options for sale, refinancing and investment. However, when it became clear that a solvent solution could not be found, they took the decision to seek the appointment of administrators.
No matter what the Chancellor announces next week – you still have time to take the decisions that can benefit your business in 2026 and beyond.
Get in touch with us today to chat with one of our advisors about what options you’ve got on the table – usually more than you realise!
The sooner you make contact, the sooner you can begin to move forward to better times ahead.