Major retailer restructures and the government take control of a South Yorkshire steelworks
The last weekend of Summer is here and Autumn is ready to arrive.
We hope you manage to enjoy it and grab some much needed downtime – hopefully including a few minutes to catch up on all the interesting and important business and insolvency news stories you might have missed from the past week.
So if you want to know why corporate insolvencies held steady last month; why CCJs against businesses have increased annually once again; what news Accountants need to know this month and how you can still give your business a summer boost – you can read all these stories and more at our advice centre page.
Speciality Steel
The government has assumed temporary ownership and control of the UK’s third largest steelworks.
The high court confirmed that Speciality Steel, which has plants in Rotherham and Stocksbridge in South Yorkshire, will be operated by the Official Receiver and would face a compulsory liquidation.
The government will assume responsibility for ongoing wages and costs to keep the plant running until a buyer is found.
A spokesperson for the government said: “We know this will be a deeply worrying time for staff and their families but we remain committed to a bright and sustainable future for steelmaking and steel making jobs in the UK.
“It is now for the independent Official Receiver to carry out their duties as liquidator, including ensuring employees are paid, while we also make sure staff and local communities are supported.”
Poundland
The High Court has approved Poundland’s restructuring plan which will see the closure of 68 stores and two distribution centres although management says the decision will secure the future of the business and its remaining stores and jobs.
The plan will see 68 stores close relatively quickly with rent reductions across a number of other locations to bring the company to a network of around 650 to 700 stores. They will also close their frozen and digital distribution centres at Darton, South Yorkshire and Bilston in the West Midlands.
They will also withdraw frozen food from their retail stores and reduce their chilled food offerings around essentials such as milk or butter.
Managing Director Barry Williams said: “The decision is vitally important for Poundland, allowing us to stabilise the business and secure the future of thousands of jobs.
“Despite the opportunity this ruling provides, I’m extremely mindful of its consequences for our colleagues – especially those leaving us as we streamline our store estate, distribution network and support teams. We acknowledge the direct impact our plans have had on them and reconfirm our commitment to do all we can to support them.
“In the coming weeks we will focus on getting us back on track – revamping ranges, lowering prices and creating the simpler and more focused Poundland we know our customers are eager for us to deliver.”
Beastly Brews
A Glasgow-based drinks business that appeared on Dragon’s Den has gone into liquidation and ceased trading.
Beastly Brews launched in the city in 2014 with their Panther M*lk brand and appeared on the show in 2022. Although a £50,000 deal with Deborah Meaden was struck on the show, it later fell through although the drink was sold in Asda and Co-op stores.
Panther M*lk was launched as a sustainable, plant-based alternative alcoholic drink.
Founder Paul Crawford said: “We had invested in the production of stock in advance with the intention of supplying to Tesco and Sainsbury’s, but both arrangements fell through, leaving us with too much stock & the cost of production to account for.
“Ultimately, cashflow difficulties as we sought to offset the stock, resulting in this unfortunate liquidation.”
The business still holds around 17,400 bottles of varying flavours and which administrators will seek to dispose of to interested parties.
Streetbees
An AI-powered market research firm which counted Unilever and Vodafone among its clients has gone into administration after efforts to find a buyer proved unsuccessful.
Streetbees, which also worked with Heineken, Ferrero and Avon, said: “We confirm that we have now entered administration after exhaustive efforts to secure additional investment have proved unsuccessful.
“Despite strong interest from multiple parties, we were unable to conclude a transaction that would provide the necessary capital to continue operations.
“Streetbees, which pioneered human intelligence gathering through its innovative platform, had seen strong traction with its new AI-first product SBX. However, the legacy challenges of the business, compounded by current market conditions, created obstacles they have been unable to overcome. Unfortunately, all staff have been made redundant.”
Apex Traffic Management
A South Lanarkshire company providing road barriers and signage has ceased trading after going into administration with the loss of 120 positions.
Apex Traffic Management Limited, based in Uddingston, provided traffic control equipment and services for roadworks and customers including Transport Scotland, Highways England, Amey Construction and Lanes Group.
They operated at venues such as Hamilton and Ayr racecourses as well as The Open when it was staged at Royal Troon.
A statement was issued from the company saying: “The directors had little choice but to place the business into administration after receiving a petition by HMRC for liquidation and after consultation with the firm’s main secured creditor – Lloyds Commercial Finance.
“Tightening margins, slower debt recovery and resulting cash flow challenges as well as increased costs of trading, especially higher minimum wage and employers’ National Insurance Contributions had led to the firm being unable to meet its ongoing obligations and the business was simply not viable.
“Apex was a highly regarded provider of traffic management services on roads and highways across the UK, and we’re working closely with customers to help ensure that, where ongoing projects are being delivered, that they can find alternative suppliers to ensure safe operation of the highways.”
Rea Valley Tractors
One of Britain’s biggest farm equipment dealers has announced a notice of intention to appoint administrators.
Directors of the parent company of Rea Valley Tractors say they’re battling an industry-wide slowdown in tractor and machinery sales and issued a statement saying: “Owing to challenges currently facing the group, the Directors of Dunstall Holdings Limited together with its subsidiaries have taken the difficult decision to file a notice of intention to appoint administrators.
“The group is not currently in administration and continues to trade with the support of its key stakeholders. This step provides the opportunity to explore options for the best route forward for the future of the business.”
Rea Valley Tractors is based in Welshpool and Teme Valley Tractors are in Knighton selling New Holland, JCB, Kuhn, Isuzu, Bailey and Joskin machinery.
Bricks Silverstone
Operators of a hotel at the iconic Silverstone race track have appointed administrators.
Bricks Silverstone and associated companies collectively control the Garden Inn Hotel Silverstone which is located on the Hamilton Straight overlooking the Start/Finish line and within walking distance of the International Conference and Exhibition Centre.
A statement from the company said that administrators would “liaise with the relevant commercial and financial stakeholders with a view to continuing the hotel’s operations as normal whilst evaluating its long-term strategic options.”
M Squared Lasers
A Glasgow quantum technology firm has gone into administration after nearly two decades in business.
M Squared Lasers was founded by Graeme Malcolm OBE in 2006 supplying customers in the UK, Europe, USA and Asia with laser platforms and quantum technologies in fields from physics to life sciences by universities and commercial partners.
The company has faced headwinds in the form of the pandemic and the war in Ukraine disrupting supply chains and component availability while competition for skilled staff and a slowdown in orders from key customers compounded its difficulties.
Despite attempts by the board to secure fresh investment and turn the business around, efforts to raise funding were unsuccessful so the business ceased trading, went into administration and made all 28 employees redundant.
Administrators are exploring options to sell the business and its specialist assets including highly specialised intellectual property and devices.
Even though we’re nearly in Autumn, there’s still time to make any changes you feel are needed to reach your goals in 2025.
Get in touch with us today and chat to one of our advisors about what options you have on the table – it’s usually more than you might realise.
The sooner you make contact, the sooner you can begin to make the rest of the year a memorable one for you and your business.