Whether the budget this week has delivered some good news or not for your company, the reality is that business life goes on.
Hopefully it is on an upward trajectory but even if circumstances are tough right now – remember that they can always change, and quickly.
You can catch up on all the interesting and important business and insolvency news stories from the past seven days quickly here too.
Check out our sector analysis stories on the retail and construction sectors over the past five years as well as finding out why directors need to take extra care when dissolving their businesses right now – you can find these stories and more at our advice centre page.
The Body Shop
Following the news that The Body Shop had gone into administration, the administrators have confirmed that an additional 75 stores all over the UK would close in the next six weeks with the loss of over 400 positions.
While the restructuring is ongoing administrators said the second wave of store closures, following the initial announcements, would provide “the best opportunity for a long term sustainable future for the iconic brand.”
They said: “In taking swift action to right-size The Body Shop UK store portfolio, we have stabilised the business and are providing the best opportunity for this iconic brand to have a long-term, sustainable future.
“The UK business continues to trade in administration and we remain fully focused on exploring all options to take the business forward.
Saietta
An electric motor manufacturer with plants in Sunderland and Oxford has gone into administration.
The Saietta Group took over a plant in Houghton le Spring in 2022 and they had been looking to sell it to new investors but the deal fell through. The plant was set to provide an electrical steering pump contract for a client but this deal fell through making the plant redundant. Saietta said that while the work was not to produce any of its own products, it would have contributed to group revenue albeit at modest margins.
Trading in Saietta shares was suspended on Monday as chairman Tony Gott said talks with interested parties would continue while in administration and that they had enough cash to see the business through to the end of March.
He said: “We’ve had some genuine interest but at present we don’t have a proposal that provides the necessary liquidity in the time we have available. Despite all other aspects of the business remaining in progress and following major restructuring throughout the business over the last 12 months, we were unable to provide the capital required, on a timely basis, to complete the journey to bring the group to a self-financing position.
“Discussions with interested parties will continue in administration but I express our deepest regret that we are having to take the very difficult decision to appoint administrators.”
Ringsfield Hall
A charitable trust which runs a Christian residential and outdoor centre near Beccles in North Suffolk has been declared insolvent, the centre closed and all staff made redundant.
The Ringsfield Hall Trust went into administration in January but Rev Mark Bee, chair of the charity said: “I can now confirm that sadly the trust had ceased trading after financial issues forced us to declare insolvency.
“At the moment we have experts looking into solutions, staff have sadly been made redundant and we have people coming to value the property which likely will be sold to pay off the debts.”
Ringsfield Hall provided children and young people with outdoor residential opportunities through school trips and activities. The 14 bedroom house was available to youth groups and churches, families and other groups for use either in their pastoral work or for social gatherings, retreats and workshops.
Interflex
A Nottinghamshire automotive parts manufacturer has filed a notice of intention to appoint administrators.
Interflex supplies a range of sealing solutions including door and boot deals, interior trim and under carpet. The company also coats and cuts materials used in manufacturing including the fabric used in arm rests to improve durability and comfort.
The company underwent a management buyout in 2021 and expanded into the horticultural sector producing biodegradable mulch mats for planting. Despite these efforts, the company had been negatively affected by a wide range of headwinds impacting the whole of the UK manufacturing sector including soaring energy and raw materials costs, supply chain disruption and high inflation.
Fox Industrial Services
A construction firm in the West Midlands which has been operating continuously for 20 years has gone into administration with a view to being wound down with all employees being made redundant.
Fox Industrial Services had been severely impacted by Covid-19 related delays that affected key contracts with the firm’s problems exacerbated further by subsequent inflationary pressures.
Now administrators will be working to undertake an “orderly wind down of the business to maximise the return to its creditors.”
UK Salads Ltd
A major Essex based supplier to Aldi has appointed administrators and stopped trading.
UK Salads grows a range of fresh produce primarily for the discount supermarket but other clients as well.
A statement from the business said: “UK Salads was a well-established growing, packing and importing company supplying to major retailers, wholesalers, catering and the public.
“Unfortunately, following a period of challenging trading conditions, the business was unable to meet its financial obligations as they fell due, entered into administration and ceased to trade.
“The administrators are now considering all options for the business and exploring interest from a number of parties.”
This has resulted in the loss of around 200 positions which have all been made redundant.
Aldi released a statement which said: “We are very sorry to hear this news and our thoughts are with all those affected. UK Salads has been a long-term partner to Aldi, and over the past few months we have been working to support them and maintain availability across our stores.”
Morale
A Glasgow furniture and homewares retailer has appointed administrators this week.
Morale Home Furnishings UK also sold garden furniture and accessories and will continue to trade while administrators consider the options for the business.
They began trading in 2006 but the company faced significant headwinds over recent months with downward price point pressure from online retailers and declining in-store footfall.
The directors injected significant funding to support the business but ultimately took the decision to appoint administrators who have retained all employees while they continue to trade.
A statement from the company said: “As consumers continue to tighten their belts as a result of the cost-of-living crisis, retailers of big-ticket items and similar considered purchases continue to come under significant pressure.
“Unfortunately, in the case of Morale, the company has been impacted by customers moving to lower-priced alternatives, including those retailers which predominantly sell online. The intention is now to trade the business for a short period while we seek to sell all remaining stock, so would encourage customers to visit the store over the coming days, where Morale’s team of dedicated employees will be available to assist.”
Britten Norman
A 70-year-old Isle-of-Wight aircraft manufacturer has filed notice to appoint administrators.
Britten-Norman, creators of the Islander plane, began construction of the flagship aircraft on the island once more for the first time since 1968 saying it would help the company to secure investment needed to support the move and its future plans.
A statement from the business clarified that the company would continue to operate as normal and said: “While the board continues to engage in constructive discussions with our key stakeholders, we have taken the decision to file court documents that will protect the position of the business.
“This will allow the board to focus on achieving the correct structure for any proposed new investment.”
The company moved manufacturing to Romania in 1969 after struggling to keep up with demand but moved it back to the Isle-of-Wight during what it called “intensified interest” in the Islander aircraft design after it revealed plans for a zero-emissions version.
Bomfords Group
A Norfolk based trucking firm has gone into administration after demand had fallen for haulage services.
Lochace Ltd, trading as Bomfords Group, provided warehousing and good transportation and will begin winding down after more than 40 years in business.
Directors said they had made the “difficult decision” after it became clear the business couldn’t continue due to “a downturn in the general haulage sector, coupled with the high interest rates.”
The rising cost of fuel and reduced demand for goods also made the business less competitive. They said they had tried to find alternative funding options but had been unsuccessful.
All staff at the will be made redundant as a result.
Spring is gradually arriving but if you’re not feeling any growth within your business this year yet, don’t panic – there is still plenty of time for new growth to spring into life.
Get in touch with us today to arrange a free initial consultation and we can begin to work with you to find ways to spark growth and recovery in the places where you most need it.
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