What stories have you missed this week?
Here’s your handy round up of all the interesting business and insolvency stories from the past week that you might not have caught up with.
So whether it’s hearing about local and national businesses going into administration, liquidation or restructuring their debts with a CVA – you will find them all here from the past seven days.
Tayside Aviation
A flight school widely acknowledged as the best in Scotland has gone into administration and ceased trading after more than five decades of providing pilot training at Dundee Airport.
Tayside Aviation Limited provided courses from private pilot licences to full commercial airline licences and also delivered the RAF Air Cadet Pilot Scheme for more than 30 years.
22 of the company’s employees have been made redundant with the rest staying on to help wind down the business.
A statement from the business said: “We are devastated that, after many months of tireless work, we have been unable to save this incredible business that has made Dundee an aviation hub for over 50 years.”
Stirling Service Limited
A Somerset based concrete cladding specialist has gone into administration this week with the loss of 45 positions.
The company had been trading since 1997 and specialised in the design, manufacture and installation of precast facades including at the City of London Academy, the Jersey Finance Centre and One Capital Square in Cardiff.
Stirling Service Limited said that the company had been hit by wider group cash flow pressures and cross guarantees which ultimately resulted in additional liabilities arising and having no access to ongoing funding.
Cudoni
A luxury online resale brand has gone into administration and ceased trading after failing to raise further investment.
Cudoni has seen 30 employees made redundant as a result while administrators look to see if they can sell or revive the business.
Launched in 2017 as a platform to allow users to buy and sell pre-loved luxury goods, the business obtained a lot of initial funding but said as it was dependent on venture capital financing to scale, it was unable to continue trading in the current macroeconomic environment.
A statement from the business said: “We have not left any stone unturned to find a solution but we are simply unable to continue. We have therefore made the incredibly difficult decision to cease trading so that we can focus our immediate efforts on returning items to sellers and find a new home for the business.
“We’re humbled and grateful to have played a part in helping shape the future of a more circular economy, at a time where sustainable ways of living have come to the forefront of people’s mind. The future of the industry is bright.”
Waas Bakery
A popular Scottish independent bakery based in Shetland has ceased operations and gone into administration.
Waas Bakery began producing loaves, rolls, pastries, cakes and pancakes in 2003.
A statement from the owners confirmed that despite taking over in 2016, they had experienced challenging trading conditions during the Covid-19 lockdowns which, together with a lack of investment capital and ongoing cost pressures had resulted in a cash flow situation that was impossible to rectify.
“As a result of being unable to sell the business and given its financial position, the directors have appointed administrators and the bakery will unfortunately cease to trade immediately.
“This is clearly disappointing news for this well-known local business and the Walls community in Shetland.”
Yes Recycling
A Fife based recycling company has gone into administration citing cash flow difficulties.
Yes Recycling is co-owned by Morrisons supermarket and only began production in September 2022 at its £1.6 million pound facility.
It was designed to take low grade plastics including sweet wrappers, crisp packets, salad bags and non PET (polyethylene terephthalate) food film. This material is cleaned and processed at the site and turned into flakes and pellets which can be used to make new plastic products.
A statement from the business said: “While the business has invested heavily in state of the art recycling equipment, it had not been able to operate at full capacity and this has resulted in cash flow challenges in recent weeks.
“As a result the company was unable to pay its debts as they fell due, resulting in administrators being appointed.”
Morrisons confirmed that the plant had encountered a number of “significant operational issues” which meant that its cash burn was “significantly ahead of projections.
“In recent weeks the business has urgently sought alternative additional funding which was unsuccessful. We have learned that the lending bank has placed the business into administration as a result.”
Union Distillers
Leicester based distillery Union Distillers has gone into administration after its parent organisation, The British Honey Company, also entered administration.
Producing a range of artisan gins, vodkas and absinthe from their distillery in Market Harborough, the decision was made by directors due to a decline in sales and key customer contracts coming to an end.
Because of this they were no longer able to meet their financial obligations.
With no forthcoming interest in a sale as a going concern, the business will be wound down with all posts being made redundant.
A statement from the business read: “Union Distillers had been trading since 2012 and introduced a new simplified business model to drive sales through more bespoke and non-alchohol brands.
“Unfortunately, due to a decrease in sales and without sufficient working capital, Union could no longer trade.”
We’ve also covered the issues facing the hair and beauty industries.
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