As the first snows of winter start to fall over the country, so do consumers’ thoughts turn to Christmas shopping in earnest.
At least that’s what retailers and many other businesses will be hoping for this weekend.
While we wait to see if these hopes are delivered, take a few moments and catch up with all the important and interesting business and insolvency news stories in our latest regular weekly round up.
So if you want to know why more charities are in financial difficulties now than during the pandemic; why business closures have now overtaken start-ups for the first time in 13 years and if you’re at risk of director fatigue – or if you just want to check out our new Accountant’s Hub – you can find them all here and more.
Paintbox Transportation Services
A Derby company that paints new railway carriages has filed a notice of intention (NOI) to appoint administrators to protect it from creditor action.
The Paintbox Group which owns Paintbox Transportation Services worked closely with manufacturers Alstom at their Litchurch Lane site. Alstom is currently consulting with workers about 1,300 potential redundancies after announcing it had no new orders for the first three months of next year.
They have also posted an NOI for its Paintbox Banbury business which paints and assembles full vehicle and lightweight car body panels in North Oxfordshire. The facility also specialises in bespoke vehicle painting and coating of carbon and composite materials.
This was sold last week to PB Editions.
The owners of the only gold mine in Scotland have appointed administrators.
Scotgold Resources had been developing the only active gold mine in Scotland at Cononish in Argyll but had announced the decision to the stock market as part of their statutory duties.
The company described itself as “the first commercial gold producer in Scotland” first poured gold in November 2020 and was in discussions with a new strategic investor with plans to further develop the mine into a plus 23,500 ounce gold mine per annum.
Unfortunately these discussions did not result in an investment.
A statement from the business said: “The administrators have assumed control of the company and will work with the board of directors during the administration period to maximise the outcome for all stakeholders of the company.
Real Good Food
A stock market listed cake decoration business has filed a notice to appoint administrators.
Real Good Food, which is based in Liverpool, saw its shares suspended this week as a result.
The group and its businesses including JF Renshaw specialise in cake decoration.
A statement from the board of directors said: “The board has carefully reviewed its management accounts and working capital position, as well as the expected sales in November and December.
“It was noted that performance had been constrained by supply issues and cash constraints which are continuing and that sales in November and December were expected to be lower than previously forecast.
“This led the board to conclude that it is in the best interests of all stakeholders to explore strategic options for its remaining business JF Renshaw. The board of JF Renshaw consequently resolved to appoint Interpath Advisory as its adviser to assist with the review of all strategic options, given a challenging environment for the company and the related cash flow constraints, which included the sale of the shares of the business and assets of JF Renshaw as well as sourcing external funding.
“Given the impact of the current operating environment on the group the board has concluded that it is required to take the necessary steps to preserve value for creditors.”
Colmore Tang Construction
A construction firm specialising in cladding remediation has gone into voluntary liquidation.
Colmore Tang Construction was launched in 2013 and grew to a peak in 2018 with £95 million turnover and 140 staff employed.
The company worked on major developments in the west midlands including the Urban Village in the Jewellery Quarter of Birmingham and The Landmark in Dudley.
They struggled for profitability during the pandemic years of 2020 to 2022 and shifted their business strategy from hotel and residential products to cladding work.
It was reported that the business was making losses and contractors were alarmed last week when the business’ website was taken down without advanced notice.
A statement from the business said: “The company was several weeks away from completing its one remaining contract when HMRC issued a winding up petition, which was a surprise to the company.
“The company has hoped to complete the contract, which it believed would have enabled it to satisfy all its creditors. However the issue of the petition meant that the company was unable to continue to trade and hence could not complete the contract.”
Blue Chip Marketing
A Manchester based PR company with clients such as Kellogg’s, O2 and Bodyform has gone into administration and ceased trading with the loss of 15 positions.
Founded in 2002, Blue Chip Marketing had performed well but was thrown into crisis when its largest client removed work with immediate effect, without notice. This removed £3.7 million from the company’s projected income and resulted in a major shortfall of turnover to break even.
A statement from the business said: “Despite hosting further discussions with the client in an attempt to maintain the business relationship, all further projects were also cancelled.
“Blue Chip was left with no income from their major client and no sign of any significant future revenue to replace it. In addition, various other projects have been delayed or cancelled further exacerbating the company’s cash flow issues. The directors took a number of steps to reduce costs, however these were not sufficient and it fell behind in its obligations to creditors, in particular trade creditors and HMRC.”
JAD Trans Scotland
A haulage business from North Lanarkshire has gone into administration.
JAD Trans Scotland had accrued significant debts it was no longer able to service so called in administrators and ceased trading with immediate effect despite “significant efforts” from the directors to keep the business operating.
With a new year rapidly approaching – there isn’t much time to identify and make the critical changes that can potentially make a real financial difference to companies in the coming weeks and months.
They’ll explain what is and isn’t feasible for a company and what you can do to start 2024 in the best position possible.