UK’s largest timber supplier in administration & directors suspended for splurging on luxury cars instead of their business.
Hopefully you will have either a busy and productive Black Friday weekend or it will be restful and give you enough energy to launch into December with renewed confidence and cheer.
Things are about to get a lot busier for everybody in the next month so we hope you’ll be able to grab a moment now to catch up on all the interesting and important business & insolvency news stories you might have missed in the past seven days.
So if you want to know why 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
As we reported last week, National Timber Group, the UK’s largest independent timber distribution and processing group, has gone into administration.
561 positions had been made redundant with immediate effect along with the closure of 13 of the group’s 47 locations.
Headquartered in Sheffield, the group was created through the acquisition of separate brands including Thornbridge, NYTimber, Rembrand Timber and Arnold Laver.
Administrators are conducting an accelerated sale process and are confident they will be able to find buyers for all or parts of the group. They regretfully acknowledged that “the company’s liquidity challenges have led to a number of immediate redundancies but are committed to supporting the affected employees through the redundancy process.”
The financial challenges for the business have intensified over recent years. Turnover for 2023 was close to £200 million but they 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.
Caramba Steakhouse Directors Disqualification
Two directors of a company that operated Brazilian steakhouses in North Yorkshire have been disqualified after an Insolvency Service investigation found that they had attempted to lease luxury vehicles at a time when the business was unable to pay its debts.
Both Dale Laverick and Alessandro Da Silva were directors of K and L Restaurants Ltd which traded as Caramba Steakhouse in two locations – Selby and in York.
The business owed HMRC £17,080 in 2022, a year after opening for outstanding rent and business rates.
It was reported that they sought specialist insolvency advice in June 2023 but at the time sought to lease Land Rovers using company funds before being encouraged to upgrade to an Audi and a Lamborghini.
Both were banned as directors for five years.
Rob Clarke, chief investigator at the Insolvency Service, said: “Their actions were utterly unreasonable and unacceptable. While their company owed substantial sums to HMRC and other creditors, including unpaid rent of £76,000, they were trying to lease luxury vehicles for themselves.
“The directors knew their company was insolvent but waited more than a year before seeking proper insolvency advice. In that time, they prioritised their own interests over those of the creditors their company owed money to.
“The Insolvency Service will not tolerate directors ignoring their legal obligations and we remain committed to protecting creditors and maintaining a level playing field for responsible businesses.”
Unimetals Recycling
One of the UK’s largest metal recycling and processing firms has filed a petition of compulsory liquidation placing 650 jobs at risk.
Unimetals Recycling (UK) Ltd is based in Stratford-upon-Avon and encountered financial difficulties after acquiring Sims Metals UK last year for £195 million.
Directors said they had worked tirelessly to secure new financing and address the deferred consideration due to Sims, filing three notices of intention to appoint administrators.
This included an accelerated M&A process, supported by advisers and undertaken in full collaboration with stakeholders to identify potential buyers or investors. Despite “substantial interest” and attempts at completing a deal, no transaction was concluded.
A statement issued on behalf of the directors said: “As a result, we have today filed a petition for the compulsory liquidation of Unimetals Recycling (UK) Ltd. We recognise how distressing this news will be for everyone connected to Unimetals Recycling, particularly our employees who have worked tirelessly over the last year since we acquired it from Sims to try and turn this business around.
“Their dedication, skill and resilience are the backbone of this business. Our priority now is to work closely with all stakeholders including employees, suppliers, customers, creditors and our regulators to ensure that the liquidation process is managed safely, responsibly and transparently.”
The Official Receiver confirmed that a winding-up order had been made against the company and will wind it down in accordance with their statutory duties. They will also officially inquire into the cause of the company’s failure and conduct of the current and former directors.
Elcocks
A 48-year old York family tool hire, sale and repair business with an additional site in Driffield has ceased trading and is going into voluntary liquidation. Ten employees including the three directors have been made redundant.
Elcocks was founded in 1977 and was being run by the third generation of the Elcock family at the time of its closure.
The directors cited a number of pressures that had contributed to the failure of the business. These included a continued decline in demand for tool repair services as consumer trends saw a shift towards replacement rather than repair. In addition, the collapse earlier this year of a major national buying group to which Elcocks belonged resulted in disruption to supply chains and a large outstanding debt demand that the business was unable to meet. With cash reserves depleted, the company was no longer able to continue operating.
Company directors Ivan Elcock, Andrew Elcock and Claire Bedford said: “This has been an incredibly difficult decision for the family and for the team who have worked with us. We’re proud of the business that was built over nearly 50 years and grateful to our loyal customers and staff who have always supported us. Sadly, the challenges facing the business in recent years became too great to overcome, and despite our best efforts, closure became inevitable.”
Whether you’re happy with what the Chancellor announced this week or are going through the fine print to find out if you’ll be paying more – you still have time to set the business on a firmer footing 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 the future you want.