All the interesting & important stories from the past week
Following the long Easter break, there’s now another Bank Holiday weekend on the horizon so we’ll need to make the most of this working period in between!
If you’ve been too busy to catch up on all the interesting and important business and insolvency news stories from the past seven days – don’t worry, we’ve got you covered here!
So if you want to know if business energy costs will rise this summer; why business insolvencies have risen for the third month in a row; why a wave of late payments is threatening to drown SMEs; practical advice on the first thing directors must do if they receive a CCJ and why a CIFAS marker could destroy your business if ignored – you can read all these stories and more right here at our advice centre.
Troax Lee Manufacturing
A metal fabrication manufacturer based in Dudley has gone into voluntary liquidation with the loss of 30 positions.
Troax Lee Manufacturing was founded in 1990 and made metal partitioning and mesh wall systems to a range of customers.
The business had been steadily profitable but in recent years had been adversely affected by significant increases in energy costs which materially increased the cost base of the manufacturing operation and placed pressure on the margins.
A statement from directors said: “Troax Lee Manufacturing had an excellent reputation in the sector but sadly it was not possible to rescue the business as a going concern and there was no alternative to liquidation in the circumstances.
“The focus now is on realising the assets of the company in order to deliver a return to creditors as well as supporting employees in redundancy.”
The company was a wholly owned subsidiary of Troax (UK) and the Troax Group who both continue to trade.
Merchant City Distributors Limited
A Scottish kitchen firm has gone into administration after 25 years of trading with the loss of 18 positions.
Merchant City Distributors Limited supplied, distributed and installed gas and electrical products.
A statement from the company said: “The challenging business environment impacted the company’s ability to trade and the Directors unfortunately saw administration as the only option.
“Detrimental supply chain issues left the company with no viable future and the only option was to appoint administrators and cease trading.”
GivEnergy
A residential energy storage system and battery manufacturer has gone into administration following a rapid deterioration in trading conditions and mounting concerns across its distribution network.
GivEnergy Ltd are based in Newcastle-Under-Lyme and operate as prominent providers of inverters, battery storage systems and electric vehicle chargers, supplying products widely used in the UK residential solar and storage market.
The company had recently introduced recurring software fees to underpin the serious financial pressure facing the business. They also indicated that slowing hardware sales and a growing user base had strained the sustainability of their platform prompting a shift towards subscription-based revenue tied to remote access and system functionality.
The news highlights structural challenges in the UK residential energy storage sector, where rapid growth in installed systems hasn’t always translated into stable, recurring revenue streams for manufacturers.
Gandys International
A lifestyle and apparel brand worn by Prince William, and Sir Richard Branson among other high-profile fans has gone into administration following a sudden withdrawal of funding that left the business unable to continue trading.
Gandys International was founded by brothers Rob and Paul Forkan in 2021 as a flip-flop brand before expanding into a broader lifestyle offering including travel-inspired clothing, bags and accessories.
They primarily operated through an e-commerce platform with a standalone store in Covent Garden and also had a philanthropic mission with a portion of profits directed to the Gandys Foundation which funded the construction of schools in developing regions.
Approximately 15 positions have been made redundant.
The Electrical Network
A North Yorkshire electrical wholesaler has gone into administration and ceased trading with all employees being made redundant.
The Electrical Network sold a range of electrical consumer products from their branches in Scarborough and Whitby.
Directors sought advice following an initial financial review and despite efforts to market the company as a going concern, no offers were received resulting in the decision to close.
No matter what line of business you operate in, these could be a nervous few weeks and months ahead.
Be proactive and take the time now to get in touch with us to arrange a free initial consultation.
Our advisors will be able to talk through your current situation and your plans for the business and let you know what options you have available that you might not have considered.
The sooner you contact us, the sooner we can begin to work together and make your plans a reality – even sooner.